U.S. Treasury yields rose slightly on Wednesday as lawmakers seek to find a clear path toward a new stimulus deal.
There has been increased activity around a potential lame-duck stimulus bill on Capitol Hill this week. Bipartisan members of the GOP-controlled Senate and Democratic-held House put together a roughly $908 billion plan.
However, Senate Majority Leader Mitch McConnell on Tuesday rejected the proposal, saying he wants to pass what he called a "targeted relief bill" this year.
The proposal, which would reinstate a partial federal unemployment insurance but not include the $1,200 stimulus checks from the CARES Act, has a price tag in between the larger proposals from House Democrats and slimmer proposals from McConnell's side.
On the data front, ADP said companies hired 307,000 workers in November, well below the 475,000 expected by economists surveyed by Dow Jones. The number was the lowest private payrolls reading since July amid a deceleration in large business hiring.
"The rapid spread of the virus across the nation is making it harder to find employment this fall and this puts the entire economic recovery from recession in jeopardy if Congress can't get it together and vote on a new stimulus package before the end of the year," Chris Rupkey, chief financial economist at MUFG, said in a note.
Federal Reserve Chairman Jerome Powell will speak at 12 p.m. ET, along with Philadelphia Fed President Patrick Harker. Fed Vice Chair for Supervision Randal Quarles and New York Fed President John Williams are set to make speeches at 11 a.m. ET. Williams will then speak again at 3 p.m. ET.
Auctions will be held on Wednesday for $25 billion of 105-day bills and $30 billion of 154-day bills.
— CNBC's Jacob Pramuk contributed to this article.