Treasury prices fall after retail sales surprise

NEW YORK — Better than expected retail sales are pushing government bond prices lower.

The government said Tuesday that retail sales fell 0.2 percent last month, with most of the drop-offs in the automotive sector. But the decline was less than economists had expected and a sign that the economy's recent stall may be short-lived.

The news sent prices of government bonds lower as traders put less value on low-risk assets. The price of the 10-year Treasury note fell 87.5 cents for every $100 invested. The dip in price pushed the yield up to 3.09 percent from 2.99 percent Monday.

In other trading, the 30-year bond slipped $1.15 for every $100 invested. Its yield rose to 4.30 percent from 4.20 percent. Bond prices fall when their yields rise.