Treasuries rose as a weaker-than-expected US producer price index (PPI) report supported the Federal Reserve to cut borrowing costs more aggressively this year. Tuesday's rise pushed the yield curve down by at least four basis points, with the two-year yield falling about five basis points to just under 4 per cent and the 10-year yield falling to around 3.9 per cent. "You can breathe a sigh of relief," said Jack McIntyre, portfolio manager at Brandywine Global Investment Management, after the weak PPI report, which kicked off a flurry of economic data releases this week. Consumer price and retail sales data, due on Wednesday and Thursday, are expected to help investors gauge the extent and speed of potential Fed rate cuts.