The bond market is having a wild month. Oil is making things even worse, tell me about this news in (https://www.cnn.com/2026/09/25/investing/bond-market-oil-stocks)

The interplay between soaring oil prices and the bond market centers on renewed inflation pressure and shifting expectations around central bank interest rates.

When crude oil prices spike, the increased cost ripples across the economy, driving up transportation, manufacturing, and consumer energy expenses. This fuels broader inflation metrics, disrupting expectations that inflation is cooling toward central bank targets.

In response, government bond yields climb sharply as bond prices fall. Investors demand higher returns to compensate for persistent inflation, factoring in the likelihood that the Federal Reserve and other major central banks will keep interest rates higher for longeror even consider further rate hikes rather than easing policy.

This dual pressure hits equity markets from two directions: higher borrowing costs diminish corporate profit margins, while rising bond yields make fixed-income assets more attractive relative to riskier equities. The resulting volatility reflects broader market anxiety that elevated energy prices will prolong restrictive monetary policy and heighten the risk of economic slowdown.