The market is starting to think the Federal Reserve's next move is raising interest rates.

Bonds sold off on Friday in a sign that investors expect the Federal Reserve to be more hawkish on interest rates amid concerns that surging oil prices could drive up inflation.

The 10-year Treasury yield, which moves inversely to bond prices, jumped as high as 4.46%, its highest level since July, as President Trump's postponement of strikes on Iranian infrastructure failed to calm investor anxieties.