The recent climb in yields comes amid a flood of economic data this week.
On Wednesday, the Commerce Department said that U.S. homebuilding and permits stumbled in April, reversing March's rise and hinting at a persistent shortage in both land and skilled labor.
Housing starts dropped 3.7 percent to a seasonally adjusted annual rate of 1.287 million units in April, the department said on Wednesday. However, data for March was revised upward to show starts rising to a 1.336 million-unit rate instead of the previously reported 1.319 million-unit rate.
Building permits fell 1.8 percent to a rate of 1.352 million units, just better than the 1.35 million economists polled by Reuters predicted.
Reports on retail sales and factory data Tuesday helped lift the U.S. 10-year yield on Tuesday, in turn weighing on U.S. stock markets amid fears it could undercut stock valuations.
The Commerce Department report said retail sales increased 0.3 percent in April, while March's figure was revised up to a 0.8 percent gain. The spending gains were spread broadly across the retail industry, with big gains at furniture and clothing stores.
"The fact that retail sales were solid certainly provided a tipping point for 10-year yields, something we expected could happen," wrote Ian Lyngen, head of U.S. rate strategy at BMO Capital Markets. "However, we'll argue that it's the broader expectations of stimulus and growth that have pulled yields this close to key levels."