Impressive monthly jobs data has sowed the seeds of expectation that May's retail sales will be pretty good as well.
Retail sales, expected at 8:30 a.m. ET, are expected to rise 1.1 percent, or 0.7 percent excluding autos, according to Thomson Reuters. That compares with no increase in headline sales last month, and a gain of just 0.1 percent when excluding automobiles.
"This retail sales [data set] will be important because the last one was so weak," said Arthur Bass, COEX Partners managing director. "If they do confirm the nonfarm payrolls, yields could move higher." Bond yields in the U.S. have risen in lockstep with a surge in German rates, but strategists say a batch of improving economic data has also supported the move as it increases expectations the U.S. Federal Reserve will proceed with its first rate hike since moving to a zero interest rate policy in 2008.