Treasury yields rose on Wednesday, the second last trading day of 2020, as investors assessed the status of a fresh coronavirus stimulus package.
Republican Senate Majority Leader Mitch McConnell on Tuesday blocked an attempt to unanimously pass a bill to increase direct payments in the year-end coronavirus relief package to $2,000.
McConnell faces pressure to act after the House — with nearly all Democrats and a few dozen Republicans on board — voted Monday to increase the cash deposits to $2,000 from $600.
Senate Republicans wary of spending more on pandemic aid are looking for a way to both meet the demands of a president who called the year-end coronavirus relief and funding bill a disgrace and hold on to their majority during races overshadowed by the crisis.
On the data front, advance economic indicators for November are scheduled to be released at around 8:30 a.m. ET. Chicago Purchasing Managers' Index (PMI) data for December and pending home sales for November will both be released slightly later in the session.
The U.S. Treasury will auction $25 billion in 105-day bills and $30 billion in 154-day bills on Wednesday.
— CNBC's Jacob Pramuk contributed to this report.