Treasury yields jumped Monday as investors reacted to a hotter-than-expected retail sales report and rising geopolitical tensions.
The yield on the 10-year Treasury rose by almost 14 basis points to 4.638%. The 2-year Treasury yield last added nearly 8 basis points, sitting at 4.957%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Data released Monday showed retail sales increased 0.7% for the month of March, considerably faster than the Dow Jones consensus forecast for a 0.3% increase.
Consumers continued shopping at a more brisk pace than anticipated even as inflation remained sticky. The Labor Department reported last week that the consumer price index increased 0.4% in March, higher than expected.
Elsewhere, traders considered the potential market impact of growing tensions in the Middle East after Iran launched several hundred missiles and drones on Israel over the weekend.
Market expectations about when the first rate cut will take place moved back following last week’s inflation data, with traders now anticipating the first rate cut to come in July or September rather than June, CME Group’s FedWatch tool showed.
