Treasury Yields Rise Amid Weak Sales and Strong Oil

US Treasury yields rose on Friday during the North American session after reversing their course following the release of disappointing US Retail Sales data. The data showed a contraction of -0.6% MoM, below forecasts of 0.1% growth and June's 0.2%. This weakness was spurred by a decline in online sales, as Amazon moved its Prime Day from July to June.

The rise in Treasury yields was partly offset by the strength of oil prices, which remained high amid fears of a resumption of hostilities in the Middle East. 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 2-year T-note yield fell before recovering some ground.

The University of Michigan Consumer Sentiment index also declined from 55.2 to 51.0 in August, showing waning consumer sentiment, although inflation expectations remained stable. The US Dollar Index (DXY) tumbled over 0.31% at 99.63, and is poised to end almost flat for the week.