Treasury Yields Hit New Highs as Strong Retail Data Damps Hopes for Imminent Fed Rate Cuts

• Treasury yields climbed to new 2023 highs after strong US retail sales data lowered expectations of Fed rate cuts this year

• The benchmark 10-year Treasury yield rose as high as 4.66%, while the 2-year yield neared 5%

• Traders are no longer fully pricing in a Fed rate cut before November, a shift from early 2023 expectations of cuts beginning in March

• Rising yields mean losses for investors who bought bonds at lower yield levels

• New York Fed President Williams said the Fed remains likely to cut rates this year if inflation gradually falls, but also pointed to enduring economic strength