Treasury yields rise ahead of May retail sales data

U.S. Treasury bond yields rose Tuesday as investors traders looked ahead to May retail sales data for insights into the health of the consumer.

The 10-year Treasury yield was under a basis point higher at 4.2808%. The 2-year Treasury note yield was also up by less than a basis point to 4.7629%.

Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.

Retail sales data for May is due Tuesday morning. Data on industrial production, manufacturing production and business inventories are also expected in the morning. Other economic reports on home sales, jobless claims and housing starts are expected later in the week.

Last week, the Federal Reserve held its benchmark policy rate steady at 5.25%-5.50% and indicated that just one rate cut would take place this year.

Minneapolis Federal Reserve President Neel Kashkari on Sunday told CBS News that it’s a “reasonable prediction” that the U.S. central bank will cut interest rates once this year, waiting until December to do it.

“We need to see more evidence to convince us that inflation is well on our way back down to 2%,” Kashkari said in an interview with CBS’ “Face the Nation” program.

Federal Reserve officials including Boston Fed President Susan Collins, Dallas Fed President Lorie Logan and Richmond Fed President Tom Barkin are expected to speak at events across the country throughout the day.

It’s a short week in the United States, with markets closed on Wednesday for the Juneteenth holiday.