Bond prices rose and their yields fell further as stocks sold off, but the reaction in Treasuries was still muted as bond traders already were positioned for a sell-off, Jim Vogel, interest rate strategist at FHN Financial in Memphis, said.

"U.S. consumption is not slowing as quickly as it appeared a month ago despite the fading stimulus, and the Delta variant did not much affect the industries feeding into retail sales," said Chris Low, chief economist at FHN Financial in New York.