Bond selloff deepens as inflation, oil prices jolt markets

The bond market is undergoing a tumultuous selloff, resulting in elevated borrowing costs for potential borrowers. Concerns surrounding inflation and rising government debt are amplified by increasing energy prices. As yield rates climb, homeowners should brace for higher mortgage costs, adding fiscal strain for many. Additionally, bond investors are seeking higher premiums to compensate for inflation risks, with tech companies’ investments in AI further impacting the market dynamics.