By Suzanne McGee PROVIDENCE, Rhode Island, May 17 (Reuters) - Investors are warning that lofty U.S. stock markets have not yet priced in the risk of rocketing inflation and are vulnerable to a sharp spike in bond yields.

Rising oil prices and climbing bond yields weighed on global markets Monday as the U.S. and Iran remained stuck in negotiations aimed at ending months of conflict and reopening shipping lanes through the Strait of Hormuz.

The 30-year Treasury Bond yield is up 10 basis points (bps) to 5.11%, above the September 2023 high; you have to go all the way back to May 2007 to find this yield. The 20-year is above 5% for the first time since September 2023.

Yields jump in the US, UK, and Japan as oil rises and Japanese PPI runs hot, raising China and inflation worries.

A new concentration risk is building inside the corporate bond market, and it mirrors what investors are already experiencing with the Magnificent Seven in the S&P 500 index. According to a recent episode of Morningstar’s Investing Insights podcast,

There's little standing in the way of a further bond-market rout, says Morningstar Wealth's Dominic Pappalardo. Rising yields tanked stocks on Friday.

The U.S. stock market is falling from its records and joining a worldwide drop for stocks, as higher oil prices send a shiver through the bond market.

The U.S. Treasury market has rarely looked more confused, at least on the surface. The yield curve is doing something it doesn't typically do: sending recession signals and inflation signals simultaneously.

The Treasury yield curve, which has historically inverted leading up to recessions, is steepening, a sign the US economy could see continued growth.

Financial intermediaries and individual investors alike rely on the Treasury market for daily liquidity and expect Treasury prices to always remain relatively stable. In a real sense, the U.S. Treasury market is the Waffle House of global finance: It needs to stay open and reliable,

Japan’s bond market is changing, which has implications worldwide. Learn how Japan’s bond yields and the yen carry trade can impact your portfolio.

A crisis in the U.S. bond market was once enough to spook President Donald Trump away from his tariff policies, but now, the market is once again "collapsing" and reaching levels even worse than before,