Treasury 10-year yields reached the highest level in almost seven weeks after a report showed U.S. retail sales unexpectedly increased in April, renewing optimism central-bank efforts to spur economic growth are working.
The U.S. Treasury sold $35 billion of five-year notes at the lowest yield since November as slowing global growth and speculation the European Central Bank is considering an interest-rate cut bolstered demand.
Treasuries rose for a third week, the longest winning streak since November, amid concern Europe will struggle to contain its sovereign-debt crisis even as Cyprus’s banks reopened after two weeks of turmoil.
Treasury 10-year note yields fell from almost the highest level in a week after sales of U.S. existing homes unexpectedly dropped in December, casting doubts on the strength of the real-estate recovery.
Treasury 10-year note yields traded in the narrowest range in six weeks as President Barack Obama prepared to meet lawmakers tomorrow to discuss ways to avoid the so-called fiscal cliff that may push the U.S. into a recession.