NEW YORK: US Treasury debt yields edged higher from lows on Wednesday after reports showed a surprise rise in retail sales last month as well as an uptick in underlying inflation, cementing expectations not only of an interest rate hike in December, but also in 2018.
The Commerce Department reported that US retail sales unexpectedly rose 0.2 percent in October, while the data for September was revised to show sales jumping 1.9 percent rather than the previously reported 1.6 percent advance.
US consumer prices, meanwhile, barely rose in October, but rising rents and healthcare costs pointed to a gradual buildup of underlying inflation.
In early morning trading, the 10-year Treasury yield rose as high as 2.341 percent, from 2.334 percent before the data.
The US two-year yield edged up to 1.679 percent, from 1.675 percent before the data.