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. Last Updated: 07/27/2016

Treasury Yields at 5-Year High

New York -- U.S. 10-year Treasury yields reached a five-year high as traders stepped up bets the economy is strong enough to keep the Federal Reserve from cutting interest rates this year.

The price of the benchmark 10-year note, which moves inversely to the yield, dropped a sixth straight week, the longest slide since 2005. A government report on June 13 showed retail sales rose by the most in more than a year in May, easing concern that falling home values will crimp consumer spending.

"Investors were expecting that housing would be a big drag along with high oil prices,'' said Alex Li, a strategist in New York at Credit Suisse Holdings, one of the 21 primary U.S. government securities dealers that underwrite Treasury auctions. "But over the past few weeks, the data has been pretty supportive in terms of growth.''

The yield on the benchmark 10-year note rose 6 basis points, or 0.06 percentage point, this week to 5.17 percent, according to bond broker Cantor Fitzgerald. The price of the 4 1/2 percent security maturing in May 2017 fell about 3/8 on the week, or $3.75 per $1,000 face amount, to 94 7/8. Prices move inversely to yields.

The yield on the 10-year note reached a five-year high of 5.33 percent on June 13 after former Fed Chairman Alan Greenspan said he expects an increase in benchmark yields and greater premiums on emerging-market debt.