Bonds 101: What you need to know about the bond market

The stock market is near record highs, but there’s another corner of Wall Street that’s flashing warning signs: the bond market

The stock market is near record highs, but there’s another corner of Wall Street that’s flashing warning signs: the bond market.

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Long-term Treasury yields — the income someone gets from investing in a government bond — have surged in recent weeks, an indication of concern about the U.S. economy and the prospect that elevated inflation is on the way.

The 30-year yield reached 5.2% Tuesday, its highest level since 2007. Meanwhile, the key 10-year Treasury yield this week hit its highest level in more than a year. International bond yields have soared in recent days, too, with long-term U.K. and Japanese yields hitting their highest levels since the late ‘90s.