Bond Yields Soar, Stocks Slide Amid Rising Inflation Expectations

Stock indexes are under pressure today as investors worry about inflation and interest rates. The 10-year T-note yield rose to a 19-year high of 5.04%, while the Dow Jones Industrial Average fell by 0.64%.

The rise in bond yields is largely due to increased expectations of a Fed rate hike at the upcoming FOMC meeting, with markets now discounting a 90% chance of a +25 bp increase.

Oil prices are also contributing to the bearish sentiment, with WTI crude up over 1% today but holding below Monday's high. Disruptions to Middle East supplies persist, further tightening global oil supplies.