Investors have reason to worry about inflation, but that may not be the main driver of rising yields. Breakeven inflation is roughly in line with the Fed's 2% long-run target. A Capital.com analyst said investors can assume long-term inflation of about 2-2.5%, but oil, tariffs, fiscal policy and other supply shocks make that estimate less certain. She said the bond sell-off is being driven by persistent inflation risks, large-scale government borrowing and intensifying capital competition, rathe

Investors have reason to worry about inflation, but that may not be the main driver of rising yields. Breakeven inflation is roughly in line with the Fed's 2% long-run target. A Capital.com analyst said investors can assume long-term inflation of about 2-2.5%, but oil, tariffs, fiscal policy and other supply shocks make that estimate less certain. She said the bond sell-off is being driven by persistent inflation risks, large-scale government borrowing and intensifying capital competition, rather than by a sharp rise in expected inflation alone.