TREASURIES-U.S. yields rise on bearish rates outlook - NewsBreak

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By Martin in Business
Updated 3 years ago

* Unexpected rise in retail sales adds to inflation fears * Five-year breakeven inflation rate highest since April 2005 (Adds comment, new prices) By Herbert Lash NEW YORK, Oct 15 (Reuters) - Treasury yields rose and a market indication of inflation expectations hit the highest since 2005 on Friday as an unexpected increase in U.S. retail sales in September added to bearish bond sentiment about the path of interest rates. The yield on benchmark 10-year U.S. Treasury notes rose 4.9 basis points to 1.569% amid fears that supply constraints could disrupt the holiday shopping season amid continued shortages of motor vehicles and other goods. Retail sales rose 0.7% last month and data for August was revised higher to show retail sales increased 0.9% instead of 0.7% as initially reported by the Commerce Department. September sales were partly lifted by higher prices. "There's an overwhelming bearishness in the market from a lot of the hedge funds and big macro accounts that think rates are g

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