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The new Federal Reserve chairman has not convinced the market that the Fed will be working to dampen inflation. Rates on consumer and business debt are already trending higher.
The yield on the 10-year Treasury was rising Wednesday after the Treasury Department announced it would buy back $6 billion in bonds, an effort it undertook to ease the market's recent wobbles.
"Escalation is the word of the day" after the U.S. hit five Iranian oil tankers near the Strait of Hormuz. Kevin Hincks points to crude oil's steady rise near $96 Wednesday morning as the key metric to watch, a level not seen since early June.
The Fed is likely to be less concerned that a rate hike will damage the labor market.
The 10-year Bund yields reached their highest since 2011 and yields on U.K. 10-year government bonds climbed to their highest level since 2007.
Your pension check is frozen while groceries cost 25% more than they did five years ago, and Social Security's next adjustment barely makes a dent. Three ETFs can act as the raise mechanism your retirement income was never built with.
Many factors are sending yields higher, but rising energy costs are the inflationary trigger
The bond selloff comes as investors were already reassessing inflation risks and government borrowing as renewed military escalations between the U.S. and Iran sparked a new surge in oil prices, with crude rising to $92 a barrel on Tuesday after two Saudi oil tanks were struck in the Strait of Hormuz. The strait handled around 20 million barrels of crude oil per day before the war, and while the U.S. says between 8 million and 9 million barrels are now exported daily, other tracking firms and analysts believe the number is between 2 million and 6 million.