Bond Sell-Off Heats Up as Oil Prices Continue to Rise

The global bond market is experiencing a sell-off, driven by rising oil prices and persistent inflation fears. This has led to an increase in bond yields, making borrowing more expensive for governments and individuals alike.

The yield on the 10-year Treasury rose to 4.76% from 4.75% late Monday, while the yield on the 2-year Treasury increased to 4.37% from 4.34%. This is a significant increase from the beginning of 2026, when yields were around 3.50%.

Rising oil prices have been a major contributor to the pressure on bond yields and inflation. The price of Brent crude rose 2% to $92.33, driven by ongoing global conflicts and supply chain disruptions.