Treasuries-Two-year yield at highest since 2024 after Fed hikes rates

The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, was last up 6.2 basis points at 4.738%.

The yield on the benchmark U.S. 10-year Treasury note US10YT=RR rose 1 basis point to 5.006%.

A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=TWEB, seen as an indicator of economic expectations, was at a positive 27.9 basis points, the flattest since June 30.

The day's economic data reinforced the view that the U.S. consumer remains resilient.

Data showed U.S. retail sales rebounded more than expected in August and that U.S. import prices surged last month.

Boosting retail sales were purchases of motor vehicles and supplies for the new school year. Commerce Department data showed retail sales jumped 1.2% last month after a revised 0.5% drop in July, which was the first decline in nine months. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, rebounding 0.8% after a previously reported 0.6% drop in July.