MARKETSCOPE : Treasury prices fell on Wednesday as Tuesday's rally lost its momentum.
The benchmark 10-year note fell 07/32 to 98-08/32 for a yield of 4.72%, while the 30-year bond sank 21/32 to 96-02/32 for a yield of 4.75%.
The Fed's Beige Book report said the economy expanded at a "moderate" pace from mid-January through late February.
Net foreign purchases of U.S. assets rose $66.0 billion in January from $53.8 billion in December, revised from $56.5 billion. Purchases of Treasuries slowed to $4.4 billion from $18.3 billion. Organization of Petroleum Exporting Countries members increased their Treasury holdings by $11.1 billion, while the U.K. picked up $10.4 billion. China added $5.9 billion, but Japan dumped $16.6 billion Treasurys. Capital inflows failed to cover the record trade deficit of $68.5 billion in January.
The New York Fed's Empire State manufacturing Index rose to a higher than expected 31.16 level in March from 21.01 in February, which was revised from 20.3. U.S. February Import Prices fell 0.5% after rising 1.4% in January, which was revised from 1.3%. The National Association of Home Builders index fell to 55 in March from 56 in February, which was revised from 57.