Treasury note prices fell on Wednesday while yields rose after Fed Chief Ben Bernanke warned of a possible recession in the U.S. economy and a report indicated job growth for U.S. companies.

Two-year Treasuries fell 6/32 in price to yield 1.903 at 5:03 p.m. in New York. Ten-year notes were down 11/32 in price to yield 3.602 percent.

Bernanke told lawmakers in Washington today that a recession is possible this year but added that the economy would make a comeback in the second half of the year.

Meanwhile, ADP Employer Services reported a better than expected 8,000 new jobs for the U.S. businesses in March. Analyst estimates had expected 45,000 lost jobs.

Futures traders were betting that the Fed will likely make less drastic policy moves than in the previous months when it meets on April 30. There is an 88 percent chance of a quarter point cut according to futures contracts on the Chicago Board of Trade. The chance a half point cut is 12 percent.