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US Treasury yields rise after economic data easily surpasses expectations

U.S. government bond yields rose on Tuesday after economic data surpassed expectations.

The yield on the benchmark 10-year Treasury note rose to 2.268 percent at 3:51 p.m. ET, while the yield on the 30-year Treasury bond was higher at 2.839 percent. Bond yields move inversely to prices.

The 2-year Treasury note hit a high yield of 1.355 percent, the 10-year Treasury note hit a high yield of 2.283 percent, and the 30-year Treasury bond hit a high yield of 2.871 percent, all of which are the highest levels since August 8.

Retail sales rose 0.6 percent in July, more than the expected increase of 0.4 percent. Meanwhile, import prices rebounded after two straight months of declines, advancing 0.1 percent.

The Empire State manufacturing index spiked to 25.2 in August from just 9.8 in July.

Yields had already notched slight gains as tension with North Korea appeared to have eased for the time being.

U.S. Markets Overview: Treasurys chart

In other data news, a monthly index of builder sentiment rose 4 points to the highest level since May. The National Association of Home Builders/Wells Fargo Housing Market Index reported that builder sentiment rose to 68. The index was at 59 last August.

In the latest news surrounding North Korea's ongoing tensions with the U.S., the Asian country's leader Kim Jong Un stated that he would hold fire on making a decision surrounding a missile strike on the area around Guam, with the leader reportedly looking for future actions by the U.S. before making a decision, Reuters reported citing the KCNA.

Tension between the two nations increased last week after a heated exchange of words between President Donald Trump and the North Korean government.

Looking to commodities, oil prices rebounded modestly from earlier losses on Tuesday after WTI dropped over 2.5 percent Monday.

No major speeches by the U.S. Federal Reserve occurred on Tuesday, however investors are in wait and see mode, ahead of the FOMC minutes due out on Wednesday.

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CNBC's Gina Francolla contributed to this report.