Bonds Rally on New Data

Bonds jumped on Thursday after reports on retail sales and initial jobless claims showed modest improvement, but did little to alter impressions of a weak economy.

The two-year note rose 3/32 to 100 10/32, dropping its yield to 1.09%, while the 10-year gained 15/32 to 103 31/32, pushing its yield lower to 3.16%. The long bond gained 27/32, lowering its yield to 4.21%.

Retail sales edged up 0.1% in May, following a revised 0.3% decline in April, the government reported. Excluding autos, sales rose 0.6% in May after a 0.4% drop in the previous month. ...