The Bond Market Is Flashing a Warning — And a Former Biden National Security Adviser Says Americans Could Get Hit Twice

A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on May 14, 2026. Wall Street stocks rose on positive sentiment surrounding the U.S.-China summit and strong Cisco earnings that reinforced confidence in artificial intelligence growth, while bond markets sold off sharply as oil prices climbed above $100 a barrel, stoking inflation fears and pushing the benchmark 10-year Treasury yield near 4.6%. (Credit: TIMOTHY A. CLARY/AFP via Getty Images)

Don't look now, but the pain from high energy prices might be about to bite Americans twice.

With no end in sight to the war in Iran and oil prices stuck above $100 a barrel, bond traders worried about inflation have sold off long-term government debt in the U.S. and developed economies in recent days. That has the effect of raising bond yields, including on the benchmark 10-year Treasury note, which rose nearly 24 basis points in the past week to end Friday near 4.6%. The 10-year Treasury yield influences the cost of mortgages, auto loans, credit card rates and other consumer debt.