The 10-year Treasury yield decreases slightly as traders evaluate Fed officials' remarks.

Early Wednesday, the 10-year U.S. Treasury yield fluctuated slightly as bond traders processed the recent remarks from Federal Reserve officials.

At 2:15 a.m. ET, the 10-year Treasury yield dropped by 1 basis point to 4.021%. Additionally, the 2-year Treasury yield decreased by 1 basis point to 3.941%.

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

After the Columbus Day holiday on Monday, bond markets resumed trading on Tuesday and were focused on processing the most recent remarks from Fed officials.

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

On Tuesday, San Francisco Fed President Mary Daly stated that the central bank has the potential to decrease rates even more.

"We are far from reaching a settled outcome, so our decisions now revolve around how quickly we can adjust towards it. However, it's possible that we may have a slightly higher interest rate than the one we initially came in with."

No public speeches by Fed officials are scheduled for Wednesday, and there are no significant economic data releases planned.

This bond market report was contributed to by Lisa Kailai Han and Sophie Kiderlin of CNBC.