Treasury yields spike following robust retail sales data

Treasury yields soared after robust retail sales data caused traders to reassess their views on the length of the Federal Reserve’s tightening cycle.

The benchmark 10-year note was last down 34/32, yielding 4.851% (versus 4.71% on Monday), while the 30-year bond was last down 42/32, yielding 3.9579% (versus 3.866% on Monday).

The dollar held steady against a basket of global currencies amid the escalating Middle East drama and ahead of central bank speeches. The DXY index gained 0.02%, while the Euro gained 0.09%. The Japanese Yen was last down 0.19% at 149.80 to the dollar, while the British pound was last at $1.2216, having lost 0.33%.