U.S. Treasury yields climbed on Tuesday, driven by investor anticipation of additional actions from the Federal Reserve to combat inflation. The yield on the benchmark 10-year Treasury note rose to 4.45%, while the 2-year Treasury yield, which is more sensitive to near-term interest rate expectations, increased to 4.90%.

Market participants are closely monitoring upcoming economic data releases, including inflation figures and employment reports, for clues about the Fed’s next moves. Remarks from Fed officials are also being scrutinized for any hints regarding the central bank’s policy outlook.

The increase in Treasury yields suggests that investors are preparing for the possibility of further interest rate hikes or a prolonged period of elevated rates. Concerns about persistent inflation and a resilient U.S. economy are contributing to these expectations.

Analysts suggest that the direction of Treasury yields in the coming weeks will largely depend on the incoming economic data and the Fed’s communication. Any signs of easing inflation could lead to a pullback in yields, while stronger-than-expected data could push them even higher.