Traders work on the floor of the New York Stock Exchange.
U.S. Treasury yields jumped on Tuesday as investors digested what President-elect Donald Trump's victory could mean for rates. Traders also awaited key inflation readings due later this week.
The 10-year Treasury yield rose by more than 11 basis points to 4.426%. The yield on the 2-year Treasury was higher by more than 8 basis points to 4.342%.
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One basis point equals 0.01%. Bond yields and their prices move in opposite directions.
The market action comes after the Federal Reserve cut interest rates for a second consecutive time last week, by 25 basis points to a target range of 4.50%-4.75%. Traders are pricing in a 65% chance of another quarter-point cut in the Fed's next December meeting, per the CME Group's FedWatch tool
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Looking further ahead, however, investors are digesting what Trump's economic pledges on taxes and trade could mean for interest rates — and whether rates could remain higher for longer than previously expected.
Hotly anticipated inflation data will be watched this week for clues about the health of the economy. The consumer price index will be published Wednesday, and the producer price index is due Thursday.
The October CPI is expected to have risen 0.2% on a month-over-month basis, the same as in the prior month, according to economists polled by Dow Jones. On a yearly basis, it's expected to have ticked higher by 2.6%, up from 2.4% in the previous reading.
