Asian bonds looked set to track Treasuries lower as the US-Iran standoff kept oil prices elevated, adding to inflation concerns and bets on further Federal Reserve interest-rate hikes. The benchmark 10-year yield climbed as much as 11 basis points to 5.27%, a fresh 19-year high, while the 30-year rate jumped to 5.55%. US oil rose after Brent settled above $105 a barrel as optimism faded for a diplomatic breakthrough in the Middle East.

Equity-index futures for Asia were mixed, with losses in South Korea and Hong Kong and marginal gains in Japan and Australia. US stock futures edged lower after the S&P 500 erased its advance for the month and the Nasdaq 100 fell 1.1%. “The broader market hasn’t been able to gain much traction because of rising yields and oil prices,” said Chris Larkin at E*Trade from Morgan Stanley.

Iran and the US remained far apart on a ceasefire and reopening the Strait of Hormuz. “Our expectations remain that the conflict will be with markets for the foreseeable future,” said Ian Lyngen at BMO Capital Markets. Investors will watch US economic data this week for signs the economy remains strong enough to support further Fed tightening. The yen traded around 157.40 per dollar early Tuesday after another warning from Japan’s currency czar.