U. S 10-year Note's yield sought a hike of 2 percent to reach a 10-month high. Treasury Market has suffered huge losses this year. The benchmark 10-year note's yield could not trade for more than 2%, putting buyers in a dilemma about rise in yields.

Supply of new debts to both private and public sector helped yields to attain a marginal growth. Bond prices were badly affected by higher stock. The final quarter of 2012 could have performed better than the 0.1%contraction.

Declined by six basis points this week, the 10-year yield has recorded a drop from 2.06% since Monday which is the highest since April 2012. "Bond yields were pushed higher to set up for supply but I think the yield is hard to make new highs in the near term," said Scott Graham, head of the U. S. government trading desk at BMO Capital Markets in Chicago.

The global economy is expected to improve and the 10-year yield has increased by 20 basis points this year.

The Federal Reserve's continued purchase of treasury bonds would decide how high yields can rise, believe buyers. Higher taxes and spending cuts will be able to help the U. S economy grow is the question that buyers want to be answered.

Bond Yields can drop further in case investors opt for cash out of stocks because of one possible reason, the euro zone's sovereign-debt crisis.