Yields briefly pared gains immediately after the US data, but came right back up.

Data showed US producer prices gained 0.2 percent in September, reversing an unexpected drop in August and in line with expectations. More importantly, a key measure of underlying producer price pressures that excludes food, energy and trade services grew 0.4 percent last month, the largest increase since January.

In early morning trading, the US 10-year yields were last at 3.232 percent, up from 3.208 percent late on Tuesday.

US 30-year yields were also higher at 3.394 percent , from Tuesday's 3.369 percent.