Investing.com - U.S. government 10-year bond yields rose to their highest level since 2011 on Tuesday and the two-year yield hit its highest since 2008 as traders continued to price in a faster pace of rate hikes by the Federal Reserve this year.
The yield on 10-year U.S. Treasury notes rose as high as 3.059% by 10:09 AM ET (14:10 GMT), the highest level since August 2011. Bond yields move inversely to prices.
Two-year Treasury yields rose as high as 2.56%, their highest since 2008.
The yield on the 30-year Treasury note was also higher at 3.191%.
Yields were boosted after a report on U.S. retail sales for April indicated that consumer spending is on track to rebound after a soft patch in the first quarter.
The Commerce Department reported that retail sales rose 0.3% in April, while the prior months figure was revised up to 0.8% from a previously reported 0.6%.
Yields have climbing higher since the Fed said on at its May meeting that inflation is moving closer to its 2% target.
The Fed raised rates in March and projected two more rate hikes this year, although many investors see three hikes as possible.