The yield on the benchmark 10-year Treasury note climbed above 3% on Wednesday as investors continue to assess the probable path of monetary policy and whether risk assets have found a bottom.

The benchmark 10-year Treasury yield was up at 3.032% while the yield on the 30-year Treasury bond rose to 3.167%. Yields move inversely to prices.

The yield on the 2-year Treasury note was higher at 3.25%, meaning the closely-watched 2-year/10-year yield curve remained inverted.

Yield-curve inversions — when shorter-term government bonds have higher yields than longer-term ones despite carrying lower risk — are often viewed by markets as signs that a recession is imminent.

Markets are attempting to gauge whether the Federal Reserve will hike interest rates by 75 basis points or the more aggressive 100 basis points at its policy meeting next week, as it looks to rein in sky-high inflation.

The uncertainty around growth, inflation and the path of monetary policy, alongside a new wave of corporate earnings reports, have led to fluctuations in risk assets in recent sessions.

Wall Street extended gains from the prior session Wednesday, fueled by a rally in tech stocks, as some traders bet that stock markets had found a bottom, and would be driven higher by stronger-than-expected corporate earnings.

On the economic front, a mortgage demand index showed more pain for homebuyers as they contend with higher prices and interest rates. Mortgage demand declined more than 6% last week compared with the prior week, dropping to its lowest level in 22 years, according to the seasonally adjusted index from the Mortgage Bankers Association.

Meanwhile, existing home sales in June fell 5.4% from May, according to the National Association of Realtors.