The yield on the benchmark two-year Treasury note reached its highest level since August 2008 Monday after the government reported that U.S. retail sales posted a strong gain in June.
The two-year note yield hit a high of 2.611 percent, its highest level since Aug. 6, 2008, when the note yielded as high as 2.606 percent.
Increased purchases of motor vehicles helped contribute to a 0.5 percent uptick in retail sales last month, with data for May revised higher to show sales rising 1.3 percent instead of the previously reported 0.8 percent gain, the Department of Commerce reported Monday.
May's rise in retail sales was the largest since September 2017.
Excluding volatile automobile, gasoline, building materials and food services components, retail sales were unchanged last month. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.
The yield on the benchmark 10-year Treasury note was higher at around 2.855 percent at 4:18 p.m. ET, while the yield on the 30-year Treasury bond was in the black at 2.96 percent. Bond yields move inversely to prices.