Key data releases cause treasury yields to increase.

On Tuesday, the U.S. Treasury yields slightly increased, with market participants anticipating the upcoming release of crucial economic data.

The benchmark yield was 4.14%, while the yield on the was 4.378%.

Yields move inversely to prices.

The Federal Reserve's decision to cut interest rates will significantly impact the markets and the economy this year, and investors are trying to predict when this will occur.

This week, two crucial economic indicators will be released: the preliminary fourth-quarter GDP growth rate on Thursday and the Commerce Department's closely monitored personal consumption expenditures price index for December on Friday.

On Monday, the risk-on sentiment remained strong, with both the and the reaching new highs, despite the uncertain outlook on the rate.

Guillermo Felices, PGIM Principal and Global Investment Strategist, stated on CNBC's "Squawk Box Europe" on Tuesday that the economy is proving to be more resilient than expected, and the prospect of central banks cutting rates supports this resilience, making it a favorable environment for bonds and risky assets.