The yield on the benchmark 10-year Treasury note fell to around 2.7114 percent, while the yield on the 30-year Treasury bond slipped to 3.0786 percent. Bond yields move inversely to prices.
Market players are focused on U.S.-China trade developments with mixed messages on the progress of talks between Washington and Beijing over the last few days. Sources told CNBC Monday that U.S.-China trade negotiations are in the"final stages" and that a summit in Mar-a-Lago later this month could close the deal. The New York Times also said in a report that Monday the trade deal being discussed would do little to address key structural issues.
Meanwhile, U.S. Secretary of State Mike Pompeo said this week he thought Washington and Beijing were"on the cusp" of reaching a deal. Despite positive comments from different members of the U.S. administration, market players are yet to find out how far-reaching any deal could be. On the economic front Wednesday, there will be ADP employment numbers at 8.15 a.m. ET and international trade figures out at 8.30 a.m. ET.
Furthermore, New York Fed President John Williams and Cleveland Fed President Loretta Mester are set to speak later on Wednesday.