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Treasuries Move Sharply Lower On Upbeat Economic Data

Treasuries showed a significant downward move over the course of the trading day on Tuesday, driving yields to multi-year highs.

Bond prices moved lower early in the session and saw further downside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped by 8.5 basis points to 3.080 percent.

With the substantial increase on the day, the ten-year yield ended the session at its highest closing level since July of 2011.

The substantial decline by treasuries came following the release of a batch of largely upbeat U.S. economic data, including a Commerce Department report showing retail sales increased in line with economist estimates in the month of April.

The Commerce Department said retail sales rose by 0.3 percent in April after climbing by an upwardly revised 0.8 percent in March.

Economists had expected sales to rise by 0.3 percent compared to the 0.6 percent increase originally reported for the previous month.

Excluding a modest increase in auto sales, retail sales still rose by 0.3 percent in April following an upwardly revised 0.4 percent increase in March.

Ex-auto sales have been expected to climb by 0.5 percent compared to the 0.2 percent uptick originally reported for the previous month.

A separate report from the National Association of Home Builders showed an unexpected improvement in homebuilder confidence in the month of May.

The report said the NAHB/Wells Fargo Housing Market Index rose to 70 in May from a downwardly revised 68 in April. Economists had expected the index to come in unchanged compared to the 69 originally reported for the previous month.

Economic data may continue to impact trading on Wednesday, with traders likely to keep an eye on reports on housing starts and industrial production.

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