Treasurys fell Wednesday, pushing 10-year note yields up for a third day, as U.S equity markets tentatively headed higher.
Investors expect debt issuance to increase this fiscal year, possibly beyond the $2 trillion already anticipated, as President Barack Obama supports billions of dollars in government programs to revive the economy.
Ten-year note yields ) rose 8 basis points to 2.46%. A basis point is 0.01%.
Two-year note yields rose 4 basis points to 0.75%.
The Treasury Department is issuing $75 billion in bills Wednesday and Wrightson ICAP expects $86 billion in the short-term security sales next week.
Also coming, the government may announce plans to issue $80 billion in notes next week, according to the research firm.
"Investors are reluctant to crank rates much lower knowing that behind Door #1 looms the huge beast of new Treasury supply," said William O'Donnell, U.S. government bond strategist at UBS Securities.
Eyes are also on Congress as it decides whether to confirm Timothy Geithner, current head of the New York Federal Reserve, as Treasury Secretary. See Geithner story.
Geithner has pledged for fundamental reform of the financial rescue plan and said quick action is needed to combat crisis.
Reducing the appeal of government debt, U.S. stocks rebounded after a sharp drop Tuesday as investors panicked at the likelihood that banks needed more capital without an easy way to get it.
"Mirroring equities has largely been the play of the day thus far," said John Canavan, fixed-income analyst at Stone & McCarthy Research Associates.
Later on, a report on homebuilder's sentiment comes out at 1 p.m.
