MARKETSCOPE: Treasury bond yields fell in intraday trading Tuesday, after better-than-expected news about inflation.

The 30 year notes were yielding 4.42%, compared to 4.45% at Monday's close. The 10 year bonds were yielding 4.13%, from 4.17% during the previous session.

News hit earlier that Producer Prices rose 0.6% in August, largely due to a 3.7% jump in energy prices. Excluding food and energy, the PPI was flat. Markets had expected a 0.7% to 0.9% August Producer Price Index increase.

In other news Tuesday, the U.S. trade deficit narrowed to $57.9 billion in July from a revised $59.5 billion in June. The deficit with China inched out to $17.65 billion from $17.59 billion in June. The data didn't surprise markets, however.

Investors awaited Consumer Price Index and Retail Sales data later in the week for more clues to the U.S. economy's health. The debate continued over whether the Federal Reserve will soon pause its credit tightening program.

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