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Treasuries Give Back Ground After Yesterday's Advance

After moving notably higher in the previous session, treasuries gave back some ground during the trading day on Wednesday.

Bond prices moved modestly lower in morning trading and remained stuck in the red throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.5 basis points to 1.638 percent.

The modest increase by the ten-year yield came after it ended Tuesday's trading at its lowest closing level in three weeks.

Upbeat earnings news from financial giants such as Goldman Sachs (GS) and JPMorgan Chase (JPM) may have inspired traders to move out of treasuries.

Traders also kept an eye on remarks by Federal Reserve Chair Jerome Powell, who told the Economic Club of Washington the central bank is likely to scale back its asset purchase program well before raising interest rates.

"We will reach the time at which we will taper asset purchases when we have made substantial further progress towards our goals from last December," Powell said.

He added, "That would in all likelihood be before, well before, the time we would consider raising interest rates. We have not voted on that order but that is the sense of the guidance."

Meanwhile, traders largely shrugged off the Fed's Beige Book, which noted economic activity in the U.S. accelerated to a moderate pace from late February to early April.

The release of the Beige Book comes two weeks ahead of the Federal Reserve's next monetary policy meeting, which is scheduled for April 27-28.

In other U.S. economic news, the Labor Department released a report showing another notable increase by import prices in the month of March.

Economic data may attract more attention on Thursday, with traders likely to keep a close eye on reports on weekly jobless claims, retail sales and industrial production.

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