Bond yields are picking up momentum again.

Yields on benchmark 10-year Treasury notes are ticking higher, on course to hit yet another 19-year high. The 30-year yield rose to 5.612%, its highest level since 2002. U.S. stocks are muted, with the Dow industrials slipping.

That's as elevated oil prices pile pressure on central banks to lift interest rates, hitting companies and consumers with higher borrowing costs. The Reserve Bank of Australia today raised its rate to a 15-year-high.

At the moment, though, Brent crude futures are giving up some of their recent gains. Oil flows out of the Middle East are recovering, which should help ease the energy supply crunch that has dialed up inflationary pressures worldwide. However, this also raises the risk that Tehran will resort to military escalation to bolster its position.

Higher bond yields, meanwhile, are pushing the dollar higher. The greenback has gained 1.5% against a basket of other currencies this September, following two months of declines.