Updated from 12:21 p.m. ESTTreasuries got hammered Wednesday, erasing the previous session's gains, hit by the net foreign holdings report and robust economic readings. The benchmark 10-year ended the day down 10/32 to yield 4.73%, while the 30-year bond plunged 25/32 to yield 4.75%. Bond prices and yields move in opposite directions. The two-year note edged lower by 2/32 to yield 4.67%, and the five-year lost 3/32 to yield 4.69%. All eyes now turn to the much-anticipated CPI report for February, which is expected to show a 0.2% gain, as well as readings on the housing market, weekly jobless claims and the Philadelphia Fed manufacturing index. "Concerns over the availability of excess capacity in the economy and the uncertainty surrounding potential growth complement the monetary policy issues supporting our call for the FOMC to maintain a bias towards tightening even after a 5% nominal funds rate has been established," says Steve Ricchiuto, chief U.S. economist at ABN Amro. Fed officials will speak about the economy after the market's close, including comments from Atlanta Fed president Jack Guynn and San Francisco's Janet Yellen. Both are voting members this year on the policy-setting Federal Open Market Committee. In new corporate issues, Deutsche Telekom ( DT) said it will sell about $2.5 billion in notes and Xerox ( XRX) also said it will sell debt, but gave no details. The Federal Reserve's "beige book" survey of economic conditions said that economic activity increased across the country in January and February, with businesses still feeling cost pressures. Higher energy costs were frequently mentioned, the Fed said. According to the report, employment increased in most regions and over several sectors. And almost every bank district reported shortages of high-skilled workers, which resulted in more rapid pay raises for those workers. This fact could help justify fears that the economy is nearing maximum employment, or the lowest level of unemployment possible before wage inflation kicks in.