Treasuries showed a notable move to the upside during trading on Wednesday, regaining ground following recent weakness.
Bond prices moved steadily higher as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5 basis points to 1.088 percent.
With the drop on the day, the ten-year yield gave back ground after inching up to its highest closing level since mid-March in the previous session.
The rebound by treasuries came as some traders looked to pick up bonds at reduced levels following the recent pullback.
In U.S. economic news, the Labor Department released a report showing U.S. consumer prices increased in line with economist estimates in the month of December.
The report said the consumer price index rose by 0.4 percent in December after edging up by 0.2 percent in November. The price growth matched expectations.
The Labor Department said the advance by the consumer price index was driven by an 8.4 percent jump in gasoline prices, which accounted for more than 60 percent of the overall increase.
Excluding food and energy prices, the core consumer price index inched up by 0.1 percent in December after rising by 0.2 percent in November. The uptick in core prices also matched economist estimates.
Later in the day, the Federal Reserve released its Beige Book, a compilation of economic evidence from the twelve Fed districts.
The report said most Fed districts reported that economic activity increased modestly since the previous Beige Book period, although conditions remained varied.
Treasuries saw further upside in afternoon trading after the Treasury Department revealed its auction of $24 billion worth of thirty-year bonds attracted above average demand.
Looking ahead, trading on Thursday may be impacted by reaction to the weekly jobless claims report along with remarks by Federal Reserve Chair Jerome Powell.