A U.S. Treasury debt auction of $39 billion in benchmark 10-year notes was well received on Wednesday, showing solid investor demand even after a bond market sell-off driven by an escalating trade war between the United States and its major trading partners led by China.

Bond prices are rebounding after a much-anticipated $39 billion government auction of 10-year U.S. Treasury notes met with strong demand from investors. Treasury yields, which rise when bond prices fall,

The yield on the 10-year Treasury rose 12 basis points to 4.285%, while the the 2-year Treasury yield inched down 2 basis points at 3.715%. One basis point is equivalent to 0.01%.