MW: Treasurys fall further after surge in retail sales
NEW YORK (MarketWatch) -- Treasury prices dropped Friday, pushing yields up sharply, after a report showed retail sales jumped more than twice as much as expected, adding to evidence the economy is recovering.
Yields on 10-year notes (UST10Y 3.53, +0.04, +1.00%) rose 4 basis points to 3.54%. A basis point is 0.01% and yields move inversely to bonds.
Two-year note yields rose 5 basis points to 0.82%.
Total retail sales rose 1.3%, the Commerce Department said. Excluding autos, sales rose 1.2%, also more than forecast. See more on retail sales data.
Investors tend to buy Treasurys as safe places to protect principal. When the economic outlook improves, they lose some appeal.
Bonds had been under pressure in European and Asian trading hours after data out of China showed industrial production and retail sales in the nation surged. See more on Chinese data.
"A flurry of data indicating that the global recovery is safe in the hands of the Chinese economy helped raise the tone today at the end of a week," said Andrew Wilkinson, senior market analyst at Interactive Brokers.
