Reuters NEW YORK (Reuters) — The yield on the benchmark U.S. 10-year Treasury note hit its highest in about seven years on Tuesday on the heels of a report that indicated a pick-up in consumer spending, lifting the dollar to its strongest level this year and weighing on stocks.
The 10-year yield neared 3.1 percent, blowing through the 3 percent level, as a wave of selling propelled the yield through a key technical support.
Wall Street’s main indexes slumped, with the Dow industrials snapping an eight-session streak of gains, hurt by concerns that rising bond yields would undercut stock valuations. The dollar’s rise also helped send gold to its low point for the year.
Yields had already been increasing earlier on Tuesday before the release of data that showed a moderate rise in U.S. retail sales in April, but also that consumer spending appeared on track to accelerate after slowing sharply in the first quarter. Other data showed factory activity regaining momentum in May.