The yield on the US 10-year Treasury note initially dipped but later rebounded to trade higher around 4.47% on Tuesday, as investors digested the latest CPI report. Headline inflation rose in line with expectations on both an annual and monthly basis, while core inflation came in softer than forecast, suggesting price pressures, particularly those stemming from recently imposed tariffs, remain limited for now. Following the data, traders modestly increased their expectations for interest rate cuts, with markets still pricing in two reductions in the federal funds rate by year-end. However, Fed Chair Jerome Powell cautioned that inflation may rise this summer due to tariff effects, hinting that rate cuts could be delayed. Looking ahead, upcoming PPI and retail sales figures due later this week will offer additional insight into the health of the US economy.