Oil Price Volatility Sends U.S. Bond Yields Soaring

Interest rates on U.S. government bonds have surged in recent days due to inflationary pressure caused by volatility in international oil prices.

The market is betting that the Federal Reserve will raise interest rates again in December, rather than October.

The 30-year Treasury yield hit a 24-year high of 5.612 percent on Tuesday, while the 10-year interest rate benchmark reached 5.265 percent, its highest level since 2007.

Despite a slight decrease in oil prices after Saudi Arabia announced it would resume crude oil exports through the Red Sea, inflation remains a major concern due to the ongoing war and high-interest corporate bonds.