Treasurys prices were slightly higher Wednesday, as U.S. stock futures pointed to a lower opening amid diminished hopes that banks were positioned to rebound.
Yields on 10-year notes , which move in the opposite direction as prices, fell 1 basis point to 2.89%. A basis point is 0.01 percentage point.
Two-year-note yields slid 1 basis point to 0.93%.
Morgan Stanley swung to a wider first-quarter loss than Wall Street expected and slashed its dividend.
Bond investors are also closely watching a taxable-bond sale by California, which is expected to price today and may top $4 billion. The offering will be by far the biggest to date under the recently created Build America Bonds program.
The program was part of Congress's economic-stimulus package and offers a federal subsidy to local governments and other municipal issuers to make it advantageous to issue in the taxable-bond market to fund infrastructure projects.
