Bond yields rise, oil extends gains as US-Iran ceasefire expires

Bond yields climbed on Tuesday to their highest in decades, with oil prices rising for a third day and stocks under pressure in Asian trade as a U.S.-Iran truce expired and Tehran threatened to adopt a "fully offensive" military posture.

The yield on the U.S. 30-year Treasury bond rose as much as 1.6 basis points to an intraday high of 5.326%, its highest in almost 20 years. Its 10-year counterpart traded up 1.8 basis points at 4.7399%.

"This matters considerably if the move continues," raising the hurdle rate for stocks, tightening financial conditions and putting pressure on leveraged companies and governments, said Charu Chanana, chief investment strategist at Saxo Bank in Singapore. "Asia is already showing some of that spillover."

As the recent global selloff in bonds deepened, the yield on the 10-year Japanese government bond rose 1.5 basis points at 2.935%, a three-decade high.