Government bond yields are jumping as inflation fears build, which is bad news for bond holders, borrowers, and anyone counting on strong company profits.

• The 10-year government bond rate moved sharply higher in one session.
• Wall Street earnings look strong on the surface, but profits are being squeezed by higher gas prices and rising costs.
• Investors do not want to lend money to the government at today's rates when inflation is eating the returns.
• Anyone who bought bonds a few weeks ago is already sitting on a loss, because rising rates push bond values down.

Outlook: If inflation keeps climbing, bond rates likely keep rising and borrowing costs go up with them.