**U.S. Treasury Yields Surge Following Trump's Victory**

U.S. Treasury yields saw a significant increase on Tuesday as market participants began to assess the potential impact of President-elect Donald Trump’s administration on interest rates. The benchmark 10-year Treasury yield surged by more than 12 basis points, reaching 4.433%, while the 2-year Treasury yield rose by over 9 basis points to 4.346%.

This spike in yields came in response to the Federal Reserve’s recent decision to reduce interest rates for the second time in a row last week, lowering the rate by 25 basis points to a target range of 4.50%-4.75%. According to the CME Group's FedWatch tool, traders are now forecasting a 65% probability of another quarter-point rate cut at the Federal Reserve's next meeting in December.

Investors are also examining how Trump's proposed economic policies on taxes and trade could influence long-term interest rates, speculating that rates might stay elevated for an extended period. Additionally, important inflation data due this week is attracting attention, as it will provide further insights into the overall economic landscape.

Key inflation reports, including the consumer price index (CPI) set to be released on Wednesday and the producer price index (PPI) coming on Thursday, are highly anticipated. Economists surveyed by Dow Jones predict that the October CPI will show a 0.2% increase on a month-over-month basis, consistent with the previous month's rise. On an annual basis, the CPI is expected to climb to 2.6%, up from the prior reading of 2.4%.