The benchmark 10-year Treasury yield in the U.S. is at its highest level in six months after robust retail sales led Wall Street to price in stronger economic growth for America.
The yield on the 10-year Treasury climbed 12.8 basis points to reach 4.627%, its highest level since early November 2023.
The yield on the long dated 30-year Treasury rose 13.6 basis points to 4.739%, also a six-month high.
At the same time, the rate on the short-term six-month Treasury note declined by 18 basis points, according to data from FactSet.
The movement in bond yields comes after data showed that retail sales in the U.S. rose by 0.7% in March, beating the 0.3% increase expected amongst economists.
The retail sales data indicates that consumer spending in America remains strong amid growing signs of a resilient U.S. economy.
At the same time, the bond market is reacting to rising tensions in the Middle East after Iran took military action against Israel over the weekend.
Markets are now waiting to see if Israel will retaliate against Iran.
The rising yields on the 10-year and 30-year Treasury notes are putting pressure on stocks, with the major American indices falling more than 1% in trading yesterday (April 15).
