U.S. Treasury yields wavered Wednesday as investors remained cautiously optimistic that recent banking turmoil has settled.

The 2-year Treasury yield gained 8 basis points to 4.08%, holding above the 4% line it recovered to on Tuesday. The yield on the 10-year Treasury was trading 6 basis points lower at 3.566%.

This month alone, the 2-year yield has traded in a range of more than 150 basis points. At its March lows, the 2-year rate traded around 3.55%. It also rose as high as 5.08%.

Yields move inversely to prices and one basis point equals 0.01%.

Markets have been processing a flurry of news from the global banking sector in recent weeks, along with what the latest round of interest rate hikes from the U.S., U.K. and EU mean for those economies.

"The shift to higher interest rates that we've seen over the last week reflects the concerns around the banking system subsiding - and also an increased awareness that the Fed is unlikely to be cutting rates in 2023," said Phillip Nelson, director of asset allocation research at NEPC.

On Tuesday and Wednesday, U.S. bank regulators are facing questions over the collapse of Silicon Valley Bank and Signature Valley Bank.

In morning trade on Wednesday, banking stocks were higher as confidence continued to return to the sector and UBS announced it would bring back former CEO Sergio Ermotti to oversee its acquisition of Credit Suisse.

Risks assets appeared to be back in favor, with European tech stocks up 1.7% and Nasdaq futures rising 0.8%.

The Treasury saw solid demand for its five-year notes auction on Tuesday, Reuters reported, with demand 2.48 times the amount on offer, the same as in February's five-year auction.