Treasury yields rose on Wednesday following stronger-than-expected retail sales and encouraging remarks from a Federal Reserve member.
Data from the Census Bureau shows that sales for U.S. retail and food services sales for December 2023 were $709.9 billion. That’s up 0.6% from the previous month and up 5.6% percent from December 2022. This exceeded the average estimate of 0.4% from economists surveyed by Down Jones.
The Census bureau adjusts for seasonal variation and holiday and trading-day differences, but not for price changes.
Following the release of the sales data, CNBC reported that the 10-year Treasury yield rose 4 basis points to 4.108% on Wednesday. This is after briefly hitting 4.117%, the highest it’s been in over a month. Meanwhile, the yield for the two-year Treasury note went up by roughly 11 bps to 4.335%.
This rise in yields followed another bump on Tuesday after Federal Reserve Governor Christopher Waller suggested that the Fed is likely to cut rates this year.