U.S. Treasuries rose as a weaker-than-expected PPI report supported the Fed's aggressive rate cuts

U.S. Treasuries rose as a weaker-than-expected U.S. producer price index (PPI) report supported the Federal Reserve's more aggressive cuts in borrowing costs this year. The rise in Treasuries on Tuesday pushed the yield curve down by at least 4 basis points, with the two-year Treasury yield falling about 5 basis points to just below 4% and the 10-year Treasury yield falling to around 3.9%. "You can breathe a sigh of relief," said Jack McIntyre, portfolio manager at Brandywine Global Investment Management, after the weak PPI report. The PPI report kicked off a series of economic data releases this week. Consumer price and retail sales data will be released on Wednesday and Thursday, respectively, and are expected to help investors assess the magnitude and speed of potential interest rate cuts by the Federal Reserve.