Treasury bonds pulled back Wednesday after a two-day price rally ahead of new debt sales and the minutes for the Federal Reserve’s policy meeting in June.   In recent trade, the benchmark 10-year note’s price was 2/32 lower, yielding 2.574%, according to Tradeweb. Bond yields rise when their prices decline.   A sale of $21 billion in 10-year notes is due at 1 p.m. Wednesday, the second leg of this week’s $61 billion new Treasury notes and bonds supply.

The to-be-auctioned 10-year note recently yielded 2.576%, the lowest level since June 2013.

Analysts said bond yields need to rise to attract buyers, especially as the auction will be conducted ahead of the Fed’s minutes due at 2 p.m. which may keep some investors on the sidelines for the debt offering.

Investors will zero in Fed officials’ discussions about its exit strategy for its massive amount of cash pumped into the banking system following the 2008 financial crisis.

The central bank has dialed back its monthly bond buying this year. Currently it is buying $35 billion per month, down from $85 billion in December 2013.

The key focus for investors is when the Fed will start raising official interest rates, a main threat to bond investors in coming years.

Many economists and analysts expect the Fed won’t start raising rates until the middle of 2015. But they caution that the Fed’s timing could move forward to earlier 2015 if the U.S. economy accelerates and inflation picks up speed.

U.S. data in recent weeks have signaled the world’s largest economy is picking up speed after a recent soft patch. The economy suffered a 2.9% contraction during the first three months in 2014, the worst quarterly performance in five years. Economists have blamed harsh Winter weather for the pullback.

Fed Chairwoman Janet Yellen signaled from the June policy meeting she is in no rush to raise interest rates, citing slack in the economy and tame wage pressure.

In the June 17-18 meeting, while Fed officials boosted the forecast of how the official interest rate will be in the following year, they cut the longer-term projection. Treasury bond prices briefly dropped and then rallied on June 18.

By Min Zeng