Many factors are sending yields higher, but rising energy costs are the inflationary trigger.

The Wall Street Journal Markets reports that crude oil prices have surged past $85 per barrel, pushing global bond markets closer to the edge. Investors are bracing for continued volatility as central banks weigh policy responses.

Treasury yields climbed to 4.3%, while German bunds hit 3.1%, reflecting growing concerns over persistent inflation. Market participants are closely watching Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde for signals on future rate hikes.

Analysts warn that if energy prices remain elevated, bond markets could face renewed stress. The U.S. Treasury market, in particular, remains vulnerable after last year's dramatic selloff. Traders now price in at least two more rate increases from the Fed this year.

Corporate issuers are also feeling the pinch. Apple Inc. and Microsoft Corp. have reportedly delayed new bond offerings as borrowing costs rise. Meanwhile, emerging markets from India to Brazil face mounting pressure as capital flows shift toward safer assets.