The 10-year U.S. Treasury yield wavered slightly early Wednesday as bond traders digested the latest comments from Federal Reserve officials this week.

At around 2:15 a.m. ET, the 10-year Treasury yield slipped over 1 basis point to 4.021%. The 2-year Treasury yield was last at 3.941%, also declining over 1 basis point.

One basis point equals 0.01%. Yields move inversely to prices.

Bond markets reopened Tuesday after the Columbus Day holiday on Monday, with bond traders digesting the latest comments from Fed officials this week.

On Monday, Minneapolis Fed President Neel Kashkari suggested that future interest rate cuts would be "modest" and reiterated that policy decisions would depend on economic data. Elsewhere, Fed Governor Christopher Waller urged caution about any future rate reductions.

On Tuesday, however, San Francisco Fed President Mary Daly said there's room for the central bank to lower rates further.

"We're a long way from where it's likely to settle," she said. "So the decisions that are really in front of us are ones about how quickly to adjust towards that level. But it's quite possible that we will have a neutral rate of interest that's a little higher than the interest rate that we came in with."

No Fed officials are due to speak publicly Wednesday and no major economic data releases are due.