"Surging Treasury Yields Reach New Highs on Strong Retail Sales Data"

US Treasury yields surged to new highs after strong retail sales data reduced expectations of Federal Reserve interest rate cuts, with the benchmark 10-year note's yield reaching 4.66%. Expectations for rate cuts have shifted, and traders are no longer fully pricing in a cut before November. Rising yields reflect expectations of prolonged restrictive Fed policy and higher inflation. The March retail sales data showed resilience in the US economy and sticky inflation, leaving bond traders cautious about betting on imminent rate cuts. New York Fed President John Williams indicated that the central bank is likely to start lowering interest rates this year if inflation continues to gradually come down.