Global bond yields climbed back to the highest level in almost two decades as rising oil prices fueled inflation concerns and investors ramped up expectations that the Federal Reserve will raise interest rates. Bonds in Japan and Australia retreated on Tuesday, with the yield on 10-year Japanese government notes touching 3% for the first time since 1996. That followed a selloff in Treasuries that has driven the 10-year US rate to its highest since January last year.

The yield on a Bloomberg gauge of global sovereign bonds advanced for a fourth straight session on Monday, rising to 3.72%, the highest since mid-2008.