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Treasuries Decline as Retail Sales Surge Most in Three Years
Treasury 10-year notes fell for a second day as sales at U.S. retailers surged in August by the most in three years, adding to signs the U.S. economy is emerging from its worst slump in over 50 years. Longer-term U.S. debt led the declines as a separate report showed wholesale prices in the U.S. rose more than twice as much as forecast in August. The spread between two- and 10-year yields widened to 2.54 percentage points, from 2.44 percentage points at the end of last week, suggesting investors are demanding more to lend to the government for longer periods because of the risk that inflation will quicken.