Treasury Yields Climb as Retail Sales Disappoint and Oil Remains Strong

US Treasury yields rose on Friday during the North American session after reversing their course following the release of US Retail Sales data, which fell short of investors' expectations. The disappointing sales figures contracted -0.6% month-over-month, below forecasts of 0.1% growth and June's 0.2%. The decline was driven by a contraction in online sales, as Amazon moved its Prime Day from July to June.

The lack of news from the Middle East kept oil prices higher, amid fears of a resumption of hostilities. West Texas Intermediate (WTI), the US crude benchmark, rose 1.50% to $82.39. The US 10-year Treasury yield edged up by over 4 basis points to 4.692%, while the US Dollar Index (DXY) tumbled over 0.31% at 99.63.

The University of Michigan Consumer Sentiment index fell from 55.2 to 51.0 in August, showing waning consumer sentiment, while inflation expectations stayed stable. The US docket will include housing data, the ADP Employment Change 4-week average, jobless claims, and Flash PMIs.