Rising oil prices are putting further pressure on bonds, pushing the yield on the 10-year U.S. Treasury note above 4.9% and within striking distance of the symbolically important 5% level.

Yields, which rise when bond prices fall, climbed overnight and moved higher still after new data showed that wholesale-price inflation sped up in August, matching economists' forecasts. The 10-year yield was recently 4.910%, according to Tradeweb, its highest intraday level since October 2023.

"Conversations have shifted back toward 5.0% 10-year yields and, frankly, we wouldn't be particularly surprised at this point to see 10s momentarily visit 5-handle territory," analysts at BMO wrote in a note late Wednesday.

Yields rose Wednesday despite the Treasury Department's announcement that it would buy up to $6 billion of longer-term debt at a buyback operation on Thursday. That operation will take place from 1:40 p.m. to 2 p.m. ET.