Bond prices fell sharply as renewed inflation fears gripped the market. Concerns about rising commodity prices, particularly oil, and a strong labor market report have spooked investors. The market is worried that the Federal Reserve might have to continue its policy of raising interest rates in order to keep inflation under control.

The yield on the 10-year Treasury note rose to its highest level in weeks as investors sold off their bond holdings. The sell-off was broad-based, affecting both government and corporate bonds. Analysts are closely watching upcoming economic data releases for further clues about the direction of inflation and interest rates.

Some economists believe that the recent rise in inflation is temporary and that the Federal Reserve will eventually pause its rate hikes. However, others argue that inflation is becoming more entrenched and that the Fed will need to be more aggressive in tightening monetary policy. The debate over the future path of interest rates is contributing to the volatility in the bond market.