U.S. Treasury yields rose marginally on Tuesday, driven by increasing inflation expectations among investors. The yield on the benchmark 10-year Treasury note edged up to 4.5%, while the 2-year note also saw a similar increase.

The move reflects the market’s anticipation of potentially higher inflation figures, with traders carefully analyzing economic indicators for signals regarding the Federal Reserve’s future policy decisions. Upcoming data releases, including the Producer Price Index (PPI) and Consumer Price Index (CPI), will be closely watched for further insights into the inflation outlook.

Analysts suggest that the bond market is likely to remain sensitive to inflation-related news. Any surprises in the data could trigger further volatility in Treasury yields as investors reassess the likelihood of additional interest rate hikes by the Federal Reserve.