U.S. 10-Year Yield Highest Since May After Retail-Sales Gain

Treasuries fell after U.S. retail sales rose for the first time in four months in July and exceeded forecasts, damping demand for the safety of U.S. government debt.

Benchmark 10-year note yields reached the highest level since May as the consumer-spending data and the Aug. 3 report of stronger-than-forecast jobs gains reduced speculation the Federal Reserve will add to its monetary stimulus. U.S. debt fell earlier after the German economy expanded in the second quarter at a faster pace than analysts forecast and the French economy unexpectedly avoided a contraction.