U.S. Treasury yields continued to gain on Friday after a report showed U.S. consumer sentiment rose to its highest level since July 2013.
The Thomson Reuters/University of Michigan's preliminary September reading on the overall index on consumer sentiment came in at 84.6, the highest since July 2013, up from 82.5 in the final August reading. The number beat the median forecast of 83.3 among economists polled by Reuters.
Separately, U.S. retail sales rose 0.6 percent in August compared with the prior month, boosted by increased auto buying. Sales have gained some 5 percent over the past year, keeping support under risk-sensitive assets like stocks in the run-up to the FOMC meeting.
"The retail sales data probably is going to keep the Fed on track to terminate their (asset) purchases by October and probably revise the language in their statement and telegraph that Fed rate hikes might be on the way,'' said Dimitri Delis, fixed-income strategist at BMO Capital Markets in Chicago.