U.S. Treasury yields edged higher on Wednesday, as investors braced for the release of crucial inflation data that could influence the Federal Reserve’s monetary policy decisions.

The yield on the benchmark 10-year Treasury note rose to 2.40%, while the 2-year Treasury yield climbed to 1.28%.

Market participants are keenly focused on the forthcoming inflation reports, seeking clues about the pace of economic growth and potential inflationary pressures. Stronger-than-expected inflation figures could prompt the Federal Reserve to adopt a more hawkish stance on interest rates.

Analysts suggest that the bond market’s reaction to the inflation data will be pivotal in determining the near-term trajectory of Treasury yields. Investors are also monitoring other economic indicators and geopolitical developments for further insights into the overall economic outlook.