The 10-year Treasury yield ticked higher after new economic data showed the U.S. economy remains solid.
The benchmark yield traded more than 2 basis points higher at 4.172%. The 2-year Treasury yield was higher by more than 6 basis points at 3.661%. The 30-year Treasury bond yield was down less than a basis point at 4.749%, however.
One basis point is equal to 0.01%, and yields and prices have an inverse relationship.
Initial weekly jobless claims dropped to 218,000 from 232,000. That figure was also well below the Dow Jones estimate of 235,000.
Jobless claims are a key indicator that could influence the Federal Reserve's monetary policy decisions. If the labor market shows signs of resiliency, the central bank may be less inclined to cut its benchmark rate. To be sure, Fed Chair Jerome Powell said Tuesday that a weakening labor market is outweighing concerns about persistent inflation.
"The increased downside risks to employment have shifted the balance of risks to achieving our goals," Powell said. "This policy stance, which I see as still modestly restrictive, leaves us well positioned to respond to potential economic developments."
Third-quarter U.S. GDP was also revised higher, now showing expansion of 3.8% on an annualized basis. Economists polled by Dow Jones expected growth of 3.3%.
Investors will now keenly await the personal consumption expenditures index, a key inflation gauge for the Fed, which will offer insights about inflation pressures and the state of the U.S. economy. They will also monitor any potential developments regarding the possibility of a government shutdown.