U.S. Treasury prices pared some gains on Wednesday after the government’s auction of 30-year bonds and the release of the Fed’s monthly Beige Book report on business activity.
Yields on the U.S. 30-year Treasury bond had tumbled to a record low earlier after a surprise drop in a measure of retail sales in December sparked fresh bets the Federal Reserve might not raise interest rates in 2015.
The Commerce Department said retail sales fell 0.9 percent, the biggest decline since last January, after increasing 0.4 percent in November. Economists had expected only a 0.1 percent drop. Retail sales excluding automobiles, gasoline, building materials and food services fell 0.4 percent last month after a 0.6 percent rise in November. Economists had expected core retail sales to rise 0.4 percent.