US Treasury Yields Rise as Oil Spike Revives CPI Fears

Yields on US government bonds moved higher to start the week, pressured by a sharp advance in crude oil prices that stoked worries about persistent inflationary pressures. The move came as market participants positioned ahead of this week's consumer price index release, which will offer the latest read on how effectively the Federal Reserve's tightening cycle is cooling price growth.

The uptick in yields followed a weaker-than-expected Nonfarm Payrolls report for the prior month, adding a layer of growth uncertainty. Rising oil costs compound the inflation picture, threatening to keep headline CPI elevated even as other components moderate.