The yield on the benchmark 10-year Treasury note was slightly higher at around 2.884 percent at 4:29 p.m. ET, while the yield on the 30-year Treasury bond was down at 3.023 percent. Bond yields move inversely to prices.
The Treasury Department auctioned $31 billion in seven-year notes Wednesday at a high yield of 2.844 percent. a day after it auction $37 billion in five-year notes and two days after selling $36 billion of two-year notes. The bid-to-cover ratio, an indicator of demand, was 2.65. Indirect bidders, which include major central banks, were awarded 59.5 percent. Direct bidders, which includes domestic money managers, bought 19 percent.
The sizable auctions represent the latest in a series of massive debt sales as the federal government seeks to fund higher budget deficits.
The Treasury plans to borrow $329 billion in the current July through September quarter, 74 percent higher than the $189 billion borrowed in the same quarter one year ago and the largest July to September amount since 2010.
The 10-year Treasury note yield gained nearly 6 basis points Tuesday amid the auction. The Treasury Department will auction another $31 billion in seven-year notes on Wednesday.
"As long as the Fed is pledged to keep raising rates, and as long as the U.S. Treasury keeps auctioning more and more debt, and as long as the deficit keeps growing at a record pace, the U.S. economy remains at risk," he added.
Switching to political news, market participants will be paying close attention to trade talks between the U.S. and major economies. On Monday, the States secured a new trade deal with Mexico, which would replace the current NAFTA agreement and last for 16 years.
In the latest surrounding the debate, Canada re-joined talks with the two nations on Tuesday, with Foreign Minister Chrystia Freeland telling reporters that Mexico's "difficult" concessions to the States earlier this week would help lead the way for productive discussions between all the countries this week; according to Reuters.
On Tuesday, U.S. Treasury Secretary Steven Mnuchin told CNBC that he was optimistic on striking a deal with Canada, but added that the White House was ready to go forward with Mexico alone, if it isn't executed. The U.S. is hoping an agreement with Canada will be made before the week draws to a close.