0911 ET - Investors have reasons to worry about inflation, but it may not be the main driver of rising bond yields. In fact, inflation expectations as measured by breakeven rates are fairly close to the Fed's 2% target in the long run. "Investors can believe inflation will average roughly 2-2.5% over the long run while simultaneously becoming less certain about that forecast because of oil, tariffs, fiscal policy and other supply shocks," Capital.com's Daniela Hathorn says in an email. The bond selloff is driven by "a combination of persistent inflation risks, heavy government borrowing and growing competition for capital rather than simply a sharp rise in expected inflation itself," she says.