Treasuries fell Wednesday after the Commerce Department released data showing that retail sales shot up 7.1% in October, a record increase that easily surpassed economists' estimates.

Excluding auto sales, retail sales rose 1%, which was also ahead of the consensus forecast. Vehicle sales skyrocketed after Detroit's Big Three started offering 0% financing to spur buying.

Not surprisingly, government-backed notes and bonds fell on the news. The two-year note was down 7/32 to 100 8/32, yielding 2.62%, and the five-year was off 12/32 to 98 24/32 to yield 3.77%. The 10-year Treasury was losing 17/32 to 104 12/32 with a yield of 4.44%, and the 30-year bond was lower by 21/32 to 106 11/32, yielding 4.96%.

Treasuries tend to drop after good news, as investors take their money to buy equities. Government debt is often treated as a safe haven in times of uncertainty, and any bad news usually sends Treasuries higher.