Traders digest Trump win, causing U.S. Treasury yields to rise as they await key data.

On Tuesday, U.S. Treasury yields increased as investors pondered the implications of President-elect Donald Trump's election victory on interest rates and eagerly anticipated crucial economic information, such as inflation, to be released later in the week.

The 10-year Treasury yield increased by over 6 basis points to 4.371%, while the 2-year Treasury yield increased by more than 7 basis points to 4.325%.

Yields and prices move in opposite directions, with one basis point equal to 0.01%.

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, according to the CME Group's FedWatch tool.

What impact will Trump's economic promises on taxes and trade have on interest rates, and will they remain elevated beyond the initial forecast?

This week, key economic data will be released, including the NFIB Business Optimism Index on Tuesday, which will provide insights on how small businesses performed in October.

On Tuesday, Federal Reserve officials such as Richmond Federal Reserve President Thomas Barkin and Federal Reserve board governor Christopher Waller will give speeches.

This week, inflation data will be closely monitored for insights into the economy's well-being. The consumer price index will be released on Wednesday, while the producer price index is scheduled for Thursday.

According to FactSet's poll of economists, the October CPI is predicted to increase by 0.2% on a month-to-month basis, the same as in the previous month. Additionally, it is expected to rise by 2.5% on a yearly basis, up from 2.4% in the previous reading.