"Terror data" exceeded expectations, and the market further postponed the Federal Reserve's interest rate cut expectations

U.S. retail sales rose more than economists had expected in March, further undermining investors' confidence that the Federal Reserve will start cutting interest rates this year. Most U.S. Treasury yields climbed to new highs since the beginning of the year, with 2-year yields nearing 5% and 10-year yields rising 10 basis points to 4.62%, the highest level since November 14 last year. Expectations for monetary policy have shifted to the Fed starting to cut interest rates later, which officials say requires a higher degree of confidence that inflation is continuing to recover towards its 2% target. Traders no longer fully expect a rate cut before November, while at the beginning of the year the market fully priced in a rate cut starting in March.