May retail sales rose 0.9%, exceeding forecasts, while core sales climbed 0.7%, signaling resilient consumer demand.
U.S. Treasury yields inched higher on Wednesday following a stronger-than-expected May retail sales report. The 10-year yield rose 1 basis point to 4.435%, while the 2-year yield increased 2 basis points to 4.06%, reflecting shifting rate expectations.
Retail sales surged 0.9% last month, outpacing the 0.5% forecast, after April’s gain was revised downward to 0.4%. Core retail sales, excluding autos, gasoline, and other volatile categories, advanced 0.7%, matching April’s unrevised increase. Higher gasoline prices contributed to the headline gain, though prices have since retreated below $4 per gallon.
Traders are also awaiting the Federal Open Market Committee statement later in the day, which will provide fresh guidance on monetary policy.