Treasury prices slipped to session lows Wednesday after a report showed the U.S. housing market poised for further improvement.

Bond investors looked past an 8.5% drop in the number of homes that broke ground last month, taking comfort instead in a bigger-than-expected rise in new building permits, an indication of future construction. December's figure was also upwardly revised, while the construction of single-family homes rose to its highest since July 2008.