Treasurys fell, sending yields higher, pressured by a round of upbeat reports on the U.S. economy and as concerns about Greek debt faded, reducing the safe-haven appeal of fixed-income assets.

Treasurys also saw losses accelerate after minutes from the Fed's last meeting on monetary policy revealed several members wanted the Fed to sell assets in the near future. The central bank has been buying assets such as Treasurys and mortgage-backed securities to help prop up housing and the U.S. economy, though it has signaled it will end these programs at the end of March. 
 
At the Fed meeting, Thomas Hoenig, president of the Kansas City Fed dissented from the majority view that the central bank should continue to promise to keep interest rates low for an extended period of time.

Yields on 2yr notes , which react more closely to expectations for Fed policy, rose 4bps to 0.851%. Yields on 10yr notes, which move inversely to prices, rose 8bps to 3.747%.

U.S. yields and the dollar received a boost after a report showed new construction of U.S. houses rebounded in January. Housing starts rose 2.8% in January to a seasonally adjusted 591,000 annualized units, the highest level of starts since July. And the output of the nation's factories, mines and utilities rose 0.9% in January, the Fed said. The increase was in line with forecasts of economists.

Lessened worries over Greek debt also weighed on prices. On Tuesday, Treasurys first came under pressure as concerns about Greece ebbed lifting appetite for oil, stocks and other assets perceived as more sensitive to economic growth. But they finished modestly higher after a Fed official's comments focused on speed bumps for the economy.

Adding pressure on longer-term bonds, which are more sensitive to rising prices over time, import prices jumped 1.4% due to higher oil and gas prices.