Pressure on U.S. Treasurys eases after 30-year yield hits highest level since 2002

U.S. Treasury yields were lower on Wednesday, recovering ground after facing heavy selling pressure in the previous session, amid investors concerns about inflation, government debt and the potential for tighter monetary policy.

The 30-year Treasury bond was last 4 basis points lower to 5.553%, after rising to its highest level since 2002 on Wednesday. The 10-year Treasury was down 3 basis points to 5.221% and the 2-year Treasury note yield was 1 basis point lower to 4.876%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Recent pressure on yields reflects the potential for future Federal Reserve interest rate decisions, as high oil prices driven by the Middle East conflict lift inflation expectations.

Traders are now pricing in a 45% chance of another Fed rate hike at its next meeting in October, according to the CME FedWatch tool.

New York Federal Reserve President John Williams said in comments late Tuesday that "there is no need for urgency, and we have time to gather more information" before the Fed's October meeting.

Investors will await the Federal Reserve's preferred inflation gauge on Wednesday, with the reading of the Personal Consumption Expenditures price index due. Economists polled by Dow Jones expect a monthly rise of 0.3%, and an annual rise of 3.7%.