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US 10-year Treasury yield rises as oil strength offsets weak retail sales
The US 10-year yield climbed to 4.692%, after Retail Sales fell 0.6% month over month and additional consumer sentiment data weakened sentiment.
US Treasury yields rose on Friday in the North American session after reversing direction around disappointing US Retail Sales data, according to FXStreet. The move reflects a tug of war between softer demand indicators and firmer oil prices tied to concerns about a potential resumption of hostilities in the Middle East.
The US 10-year Treasury yield edged up by more than 4 basis points to 4.692%. West Texas Intermediate crude was also higher, up 1.50% to $82.39, helping support rates even as data pointed to weaker consumer activity.
Retail Sales contracted 0.6% month over month, worse than forecasts for a 0.1% increase and below the prior month’s 0.2% gain. The decline was attributed to a drop in online sales, including the impact of Amazon moving Prime Day from July to June, while gasoline prices also fell.
Further, the University of Michigan Consumer Sentiment index fell from 55.2 to 51.0 in August, while inflation expectations were steady. FXStreet also noted that money markets have priced in a 63% chance of a Fed rate hike at the December 2026 meeting, and the US Dollar Index eased to 99.63, down more than 0.3% on the day.
Latest closeWTI crude $82.40 ▲1.4%|Gasoline (RBOB) $2.901 ▼7.3%|Dollar index 99.64 ▼0.3%