Bonds

Treasury yields climb on strong economic data

Share

Treasury yields climbed on Thursday after strong economic data boosted investors' risk appetite.

The yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.812%, while the yield on the 30-year Treasury bond was also higher at around 2.262%.

Yields popped after data from the Commerce Department showed retail sales rose 0.3% in December, matching analyst expectations. The latest weekly jobless claims also came in at 204,000, lower than the 216,000 expected.

"The net of the data leaves the macro narrative unchanged and clears the way for another melt-up in yields and domestic equities," Ian Lyngen, BMO Capital Markets' head of U.S. rates, said in a note after the data release.

Investors also cheered the signing of the long-awaited preliminary trade agreement between the U.S. and China Wednesday.

Under the 'phase one" trade deal, China is set to buy an additional $200 billion in U.S. goods over the next two years. U.S. exports to China should in theory rise to $263 billion in 2020 and $309 billion in 2021.

The U.S. Treasury is set to auction $35 billion in four-week bills and $35 billion in eight-week bills on Thursday.

Fed Governor Michelle Bowman will comment on the world's largest economy at an event in Kansas City slightly later in the session.

— CNBC's Sam Meredith contributed reporting.