Global bond sell-off reignites as oil jumps to $109 - Financial Times

A renewed wave of selling in global bond markets has coincided with a sharp rise in oil prices, with crude reaching $109 a barrel. The two moves are closely linked in investors' minds: higher energy costs can feed through to broader inflation, which in turn shapes expectations for how long central banks may need to keep policy tight.

When bond prices fall, yields rise. That matters because government yields sit at the foundation of most asset pricing, influencing borrowing costs for mortgages, corporate debt, and everything priced off a "risk-free" rate. A simultaneous jump in oil adds a supply-side cost pressure that is harder for policymakers to look through than a demand-driven price rise.

What to watch from here: whether the oil move holds or fades, how inflation expectations respond in surveys and market-implied measures, and whether central bank commentary acknowledges the energy shift. For now, the story is one of two markets — energy and rates — reinforcing each other rather than offsetting.