Oil prices climb, bond yields rise as US-Iran ceasefire expires

Oil prices edged higher and bond yields rose as Asian markets opened on Tuesday, according to Business Recorder, after a US-Iran truce expired and Tehran signalled a fully offensive stance. Brent crude gained 0.2% to $91.06 per barrel, building on a rise of more than $2 on Monday. MSCI's broadest Asia-Pacific index outside Japan still gained 0.8%, helped by a surge of over 3% in South Korea's KOSPI.

The US 10-year Treasury yield climbed to 4.728%, and the 30-year yield reached 5.3146%, its highest in over two decades. ING analysts said the latest signals pointed to no imminent end to the conflict, a contrast with past episodes when yields above 4.65% were followed by reassuring remarks from the Trump administration. Japan's 10-year government bond yield climbed 2.5 basis points to 2.945%, a three-decade high, as the global bond selloff deepened.

On Wall Street overnight, the S&P 500 lost 0.5% and the Nasdaq Composite dipped 0.3% after weak US retail sales data led traders to pare expectations of a near-term Federal Reserve rate move. Westpac analysts described a risk-off mood as President Trump said he was not keen on extending the truce with Iran. Gold rose 0.1% to $4,420.07 and bitcoin traded at $64,398.48, while the dollar index sat close to its lowest level in two months at 99.527.