June retail sales come in lower than expected and makets brace for a rate hike next week, keeping yields under pressure. AmeriVet’s Gregory Faranello says that, since peaking at around 5.10% in March, two-year yields have fallen fast.

“With the Fed likely to go at least one more time this year and promoting higher for longer [there is] no real need to ‘chase’ yield,” Faranello says. Retail sales grew 0.2% in June, down from May’s revised 0.5% and consensus of 0.5%. Faranello says the report’s fine print shows that sales were “not as weak as the headline suggests.”

The 10-year is at 3.774% and the two-year at 4.709%.

By: Paulo Trevisani (paulo.trevisani@wsj.com)