High inflation is pushing yields to 5% on Treasury bonds

Investors sold U.S. government debt as higher energy prices tied to the Iran war raised inflation concerns and pressured the cost of living. The move points to a risk-off shift in bond markets, with higher oil/energy costs potentially keeping yields elevated and complicating the inflation outlook.

Analysis

Investors sold U.S. government debt as higher energy prices tied to the Iran war raised inflation concerns and pressured the cost of living. The move points to a risk-off shift in bond markets, with higher oil/energy costs potentially keeping yields elevated and complicating the inflation outlook.