Yields pop after US retail sales but then reverse

<p>A strong US retail sales report caused a pop in bond yields and the US dollar but both quickly gave back gains.</p><p>US 10-year yields touched 4.27% in the aftermath of the data, which is the highest since October but quickly reversed back to 4.22%, though they remain higher by 3.5% bps on the day.</p><p>The US dollar followed a similar path as USD/JPY rose to 145.86 but couldn't get through the European high and slid back.</p><p>One source of restraint for yields and the dollar might be equities. S&amp;P 500 futures are down 28 points as the market sours on the outlook for China after a series of disappointing <a href="https://www.forexlive.com/news/china-july-industrial-production-37-yy-expected-45-retail-sales-25-48-20230815/" target="_blank" rel="follow">data points</a> earlier today.</p>

This article was written by Adam Button at www.forexlive.com.