May retail sales data anticipates a rise in treasury yields.

On Tuesday, U.S. Treasury bond yields increased as investors and traders anticipated the release of May retail sales data to gauge the well-being of consumers.

The 10-year Treasury yield was 4.2808%, while the 2-year Treasury note yield increased by less than a basis point to 4.7629%.

Prices and yields move in opposite directions. A basis point is equivalent to 0.01%.

Economic reports on retail sales, industrial production, manufacturing production, business inventories, home sales, jobless claims, and housing starts are due this week.

The Federal Reserve maintained its benchmark policy rate at 5.25%-5.50% last week and announced that only one rate reduction would occur in 2023.

On Sunday, Neel Kashkari, President of the Minneapolis Federal Reserve, stated that it is likely that the U.S. central bank will reduce interest rates at least once this year, with the possibility of doing so in December.

Kashkari stated in an interview with "Face the Nation" that we require additional evidence to convince us that inflation will decrease to 2%.

Officials from the Federal Reserve, including Susan Collins from the Boston branch, Lorie Logan from the Dallas branch, and Tom Barkin from the Richmond branch, are scheduled to give speeches at various events across the country on the same day.

The United States observes a short week this week, with markets closed on Wednesday in honor of Juneteenth.