Shorter-dated US Treasury yields rose on Monday as a closely watched segment of February’s retail sales report beat economists’ expectations, before the Federal Reserve this week is expected to keep interest rates on hold.
A stock market rally also reduced safe haven demand for US government debt.
Yields hit a session high after the Control Group in February’s retail sales data rose 1 percent during the month. Trading was choppy, however, as headline retail sales posted only a 0.2 percent gain, below economists’ estimates.
“You can make either positive or negative trends out of it. Much of the swings were in non-store retailers. They were unusually weak last month. They were unusually strong this month. It probably just evens out,” said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott.
Other data showed that factory activity in New York State plummeted this month by the most in nearly two years.
