Most US treasury yields climbed to new year-to-date highs - and the two-year note’s approached 5% - after stronger-than-estimated retail sales data further eroded investor confidence in Federal Reserve (Fed) interest-rate cuts beginning this year.

The benchmark 10-year note’s yield rose as much as 10 basis points to 4.62%, the highest level since Nov 14, after March retail sales rose more than economists estimated and February’s increases were revised higher.

Expectations for monetary policy have been shifting towards a later start to Fed rate cuts, which officials have said requires a higher degree of confidence that inflation is on a sustainable path back towards their 2% target.

Traders are no longer fully pricing in a rate cut before November, while at the start of the year, cuts beginning in March were fully priced in. 

  - Bloomberg