MW: Treasurys gain as retail sales worse than feared
Treasury prices rose on Wednesday, pushing yields to the lowest this year, after a government report said retail sales dropped 2.7% in December, far more than expected.
Ten-year note yields ) slid for a sixth day, down 9 basis points, or 0.09%, to 2.18%.
Two-year note yields ) declined 5 basis points to 0.70%.
Economists surveyed by MarketWatch forecast sales would decline 1.5% last month.
Excluding autos, sales fell 3.1%, their biggest drop since record-keeping began in the early 1990s and compared to an anticipated 1.6% decline. See retail sales story.
"This is what the worst of an economic downturn looks like," said T.J. Marta, fixed-income strategist at RBC Capital Markets. "We are at the stage where the data prints - and negative surprises - are the worst."
A separate report showed import prices fell 4.2% last month, mostly due to oil prices.
