Bond prices and yields move inversely because the coupon payment on a bond is fixed at issuance. When market interest rates rise, new bonds are issued with higher coupons, making older bonds with lower coupons less valuable to investors, forcing their market price down to equalize the return.

Oil price spikes increase headline inflation by raising transportation and production costs. Central banks typically raise or maintain high interest rates to combat this inflation, which causes bond yields to increase as the market prices in the expectation of tighter monetary policy.

High bond yields are not inherently bad, but they increase the cost of borrowing for governments, businesses, and consumers. While they provide better returns for savers, they can slow economic growth by making it more expensive to finance new projects or purchase homes.

The Strait of Hormuz is a critical shipping chokepoint for global oil supplies. Any disruption there risks a significant reduction in global energy supply, which causes oil prices to surge, triggering inflationary pressures that ripple through global financial markets and bond yields.

Mortgage rates change daily because they are derived from mortgage-backed securities traded on the secondary market. These securities fluctuate in price based on investor demand, which is heavily influenced by 10-year Treasury yields, inflation data, and broader economic stability.