The 10-year note fell 10/32 to 97-07/32 for a yield of 4.61%, the highest closing yield since Mar. 28. The 30-year bond sank 21/32 to 108-11/32 for a yield of 4.80%.
The Fed, worried about inflation, raised rates 25 basis points Tuesday to the 4% level. Now investors were waiting for more clues about U.S. monetary policy during Chairman Alan Greenspan's testimony to the Joint Economic Commmittee on Thursday.
The Fed has hiked interest rates twelve times since 2004, in an effort to combat price inflation.