Bond yields spiking on inflation fears

NEW YORK (CNNMoney.com) -- Inflation fears have taken center stage as the weak dollar and surging prices for oil, corn and other commodities have clearly spooked bond investors.

Yields are up sharply over the past few weeks, with the 10-Year Treasury touching 4.27% on Monday, up from 4% just a few weeks ago. The yield on the 2-Year Treasury is now hovering around 3%, up from around 2.75% not long ago.

And analysts think yields could head higher from here.

"When you hear the pundits all talking about inflation all day long, the market is going to price more inflation into the market," said Stephen Cooke, director of credit research With SMH Capital Advisors, Inc, a Fort Worth, Tx.-based firm that primarily invests in high-yield bonds. "There probably will be some more pressure on Treasury yields in the near-term."