Earlier data showed that U.S. retail sales rose less than expected in May and first-time applications for unemployment benefits increased last week. These numbers though were not big shockers and are less likely to alter the timing of the Federal Reserve's first interest rate increase after the end of its asset-buying plan.
The retail sales figure was the last major economic data reported before next week's two-day monetary policy meeting of the U.S. central bank.
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"The numbers won't change the outlook for the Fed meeting next week. It's not a big enough of a miss,'' said Stanley Sun, interest rate strategist at Nomura Securities in New York. "It's still kind of a muddle-through scenario for the U.S. economy, which in general is still constructive for Treasuries. Yields are rich, but as long as we don't see the data bouncing back, there's no reason to sell.''
—CNBC.com with Reuters