U.S. Treasury yields rose on Tuesday after the release of inflation data. The yield on the benchmark 10-year Treasury note increased to 2.87%, while the 2-year Treasury yield climbed to 2.73%.

The Labor Department reported that the Producer Price Index (PPI), a measure of wholesale inflation, rose 0.1% in November, slightly below expectations. However, the core PPI, which excludes food and energy, increased by 0.3%, exceeding forecasts.

The data suggests that inflationary pressures may be building in the economy, potentially prompting the Federal Reserve to continue raising interest rates. Investors are closely watching economic indicators for clues about the Fed’s future policy decisions.

Other factors influencing the Treasury market include:

• Global economic growth concerns
• Trade tensions between the U.S. and China
• The Federal Reserve’s balance sheet reduction

Analysts expect continued volatility in the Treasury market as investors digest economic data and assess the outlook for monetary policy.