Inflation clouds weigh heavily on the bond market, pushing the yield of the 10-year US Treasury bond to a high point.

According to data from Tradeweb, US bond yields jumped after a small fluctuation earlier in the day, with the yield on the 10-year US bond climbing to 4.175%, the highest level since February 12. The reason for the increase in yields is due to the rise in oil prices caused by the Middle East conflict, which has sparked concerns about escalating inflation and weakened the possibility of interest rate cuts. Abdelaziz Albogdady of FXEM pointed out in a report, "The ongoing tension in the Middle East has pushed up energy prices, exacerbating fears of global inflation and forcing investors to reassess the timeline for the Fed's monetary policy easing." This market research and financial technology strategist stated that the rise in US bond yields reflects "inflation concerns and strong domestic fundamentals."