Treasuries were lower Wednesday after a report on U.S. manufacturing came in stronger than economists were expecting.

Approaching midday, the two-year note was off 8/32 to 100 4/32, yielding 3.18%. The five-year was losing 15/32 to 95 30/32 to yield 4.44%, and the 10-year was lower by 16/32 to 99 9/32, yielding 5.09%. The 30-year bond was down 10/32 to 98 9/32, yielding 5.49%.

According to the Institute for Supply Management, formerly known as the National Association of Purchasing Management, the manufacturing index rose to 48.2 in December, up from 44.5 in November. Experts were calling for a reading of 46. A number below 50 signals contraction, but because of the stronger-than-expected reading, some interpreted the report as a sign that the economy is continuing to recover.

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