Bond prices initially moved to the downside but climbed firmly into positive territory over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 10.5 basis points to 3.408 percent.
The ten-year yield added to the 8.6 basis point drop seen on Tuesday, ending the session at its lowest closing level in almost three months.
Treasuries may have benefited from their appeal as a safe haven amid concerns about higher interest rates pushing the economy into a prolonged recession.
The Fed still seems poised to slow the pace of interest rate hikes next week, but recent upbeat economic data has raised concerns about how much further the central bank will raise rates at future meetings.
The continued advance by treasuries also came following the release of a report from the Labor Department showing unit labor costs jumped by much less than previously estimated in the third quarter.
The report showed the surge in unit labor costs in the third quarter was downwardly revised to 2.4 percent from 3.5 percent. The jump in unit labor costs was expected to be downwardly revised to 3.2 percent.
The downward revision to unit labor cost growth reflected an upward revision to labor productivity as well as a downward revision to the spike in hourly compensation.
The data may have helped offset recent inflation concerns, although traders continue to look ahead to Friday's report on producer price inflation in November.
The University of Michigan is also due to release its preliminary report on consumer sentiment in the month of December on Friday. The report includes readings on inflation expectations that could impact the outlook for interest rates.
A report on weekly jobless claims may attract some attention on Thursday, although trading may be somewhat subdued ahead of Friday's data.
