U.S. Treasury yields fell on Tuesday after data showed retail sales in the world's largest economy grew less than expected last month, keeping the Federal Reserve on track to lower interest rates ths year.

A government report showed U.S. retail sales rose 0.1% last month after a downwardly revised 0.2% drop in April. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, gaining 0.3% in May.

The benchmark 10-year yield slid 3.3 basis points (bps) to 4.245%. On the front end of the curve, the two-year yield dropped 4.9 bps to 4.712%

(Reporting by Gertrude Chavez-Dreyfuss)