Rising geopolitical tensions between the U.S. and Iran have pushed oil prices higher, while expectations that the Federal Reserve will raise interest rates further have lifted U.S. Treasury yields to multi-year highs. In early Asian trading, selling pressure on government bonds has begun to stabilize.

The U.S. 10-year Treasury yield rose as much as 11 basis points on Monday, hitting its highest level since 2007 before retreating to 5.23%, where it was largely unchanged. The 2-year and 30-year Treasury yields also showed little movement, as traders expect the Federal Reserve to continue tightening monetary policy to control inflation.

Ahead of the Reserve Bank of Australia’s monetary policy decision on Tuesday evening, Australian government bond prices were little changed.

Brent crude rose 0.5% to $105.77 per barrel, as optimism over a potential breakthrough in Middle East diplomacy faded. Gold traded around $4,120 per ounce, extending its decline from Monday, when the price fell nearly 4%.

MSCI’s Asia-Pacific index fell 0.3%, with both South Korean and Japanese stocks declining. Benchmark Wall Street futures were down 0.1%.

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