U.S. Treasury yields edged higher on Tuesday, driven by growing expectations that the Federal Reserve will continue its path of interest rate increases in the coming months. Recent strong economic data has fueled speculation that the central bank will maintain a hawkish stance on monetary policy.

The yield on the benchmark 10-year Treasury note rose to its highest level since March, reflecting increased investor confidence in the U.S. economy and anticipation of higher borrowing costs. Shorter-term Treasury yields also saw gains, with the 2-year yield climbing to its highest point in several years.

Market participants are closely monitoring upcoming economic releases for further clues about the Fed’s likely course of action. Inflation data and employment figures will be particularly important in shaping expectations for future rate hikes.

The rise in Treasury yields could have implications for other asset classes, including stocks and corporate bonds. Higher yields tend to make bonds more attractive to investors, potentially leading to a shift in capital away from riskier assets.

Analysts suggest that the upward trend in Treasury yields is likely to continue as long as the U.S. economy remains strong and the Fed signals its intention to tighten monetary policy further.