Treasury Yields Climb as Strong Data Sow Doubt on Fed Rate Cuts
- September US retail sales rose more than economists estimated
- Traders pare bets that Fed will cut rates twice more this year
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US government bonds slumped after strong September retail-sales figures fanned doubts over how quickly the Federal Reserve will continue to lower interest rates.
The selloff pushed Treasury yields higher by as much as seven to 10 basis points. Initially, short maturities led the move as traders trimmed bets that the US central bank will cut rates at its next several meetings, as most Wall Street banks have been predicting. Later, those yields retreated from session highs while 10- to 30-year rates continued to rise.