The University of Michigan consumer sentiment index for July came in at 80.8, below the 86.5 Refinitv estimates as consumers expressed concerns over inflation. Consumers expect prices will increase 4.8% over the next 12 months, the most since August 2008.
This after a separate report showed sales rose 0.6% in June, exceeding the 0.4% decline that analysts surveyed by Refinitiv had expected.
In the Treasury market, the 10-year note was little changed near 1.33%.
In stocks, rate-sensitive sectors lagged after early outperformance.
Banks, including JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Holdings, pulled back amid concerns over the economy.