U.S. Treasury yields climbed on Tuesday following reports that President Donald Trump’s planned tariffs may be more limited in scope, with certain sector-specific duties potentially delayed.

The benchmark 10-year Treasury yield rose nearly two basis points to 4.346%, while the 2-year Treasury yield increased by over one basis point to 4.051%. Yields and bond prices move inversely, with one basis point equaling 0.01%.

According to reports, the White House plans to implement the new tariffs on April 2 but with a more focused approach. Trump also hinted at potential “flexibility” regarding reciprocal tariffs for trading partners.

Investors are closely watching economic indicators, including the S&P CoreLogic Case-Shiller home price index for January, due later on Tuesday. However, the most significant release of the week will be the Federal Reserve’s preferred inflation measure, the personal consumption expenditures index, on Friday.

On Monday, the PMI report exceeded expectations with a reading of 54.3, surpassing the projected 51.5 and February’s 51. A reading above 50 indicates economic expansion.

Eastspring Investments suggested that U.S. economic data remains strong, countering recent bearish sentiment in the stock market. However, economists warned that these figures do not yet reflect the potential impact of tariffs, which will become clearer in the coming months.