The Marriner S. Eccles Federal Reserve building in Washington, DC. Photographer: Stefani Reynolds/Bloomberg

Traders now have no doubt: The Federal Reserve will start raising interest rates once again next week. The implied interest rate on the swap contract linked to the Fed's July 26 rate decision rose to 5.33 percent—a quarter point higher than the 5.08 percent effective level of the policy rate most days since May 4.

Treasury yields across maturities were down between 3 and 7 basis points (bps), with the policy-sensitive two-year rate hovering around 4.7 percent. Yields slumped after data showed U.S. retail sales rose by less than forecast, before quickly moving away from session lows as the complete report, along with revisions, showed still-robust consumer spending.

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