Bonds News

TREASURIES-Yields pare losses after stronger-than-expected U.S. data

NEW YORK, Aug 15 (Reuters) - U.S. Treasury yields cut their losses on Wednesday after a batch of better-than-expected U.S. economic data reinforced expectations of an interest rate hike by the Federal Reserve next month.

Wednesday’s slew of reports was led by U.S. retail sales which rose 0.5 percent, beating expectations.

Other reports showed that U.S. productivity in the second quarter was the strongest in three years, while the New York Fed business index also overshot the consensus forecast.

In morning trading, U.S. 10-year yields rose to 2.871 percent after the data, from 2.869 percent just before. Yields though were lower from Tuesday’s 2.895 percent.

U.S. 30-year yields climbed to 3.045 percent after the data, from 3.039 percent before the report’s release. On the day, however, 30-year yields were still down from 3.062 percent late on Tuesday. (Reporting by Gertrude Chavez-Dreyfuss Editing by Chizu Nomiyama)