Bonds from Tokyo to New York extended losses on Monday as rising energy prices from the ongoing Middle East war fanned inflation fears and stoked investor wagers on rate hikes from global central banks. Benchmark 10-year U.S. Treasury yields, which move inversely to prices, jumped to their highest since February 2025 in early Asia trade at 4.6310%, having climbed more than 20 basis points last week. The two-year yield touched a 14-month top of 4.1020%, while the 30-year U.S. Treasury yield rose to a one-year high of 5.1590%. The moves came on the back of a climb in oil prices on Monday, as efforts to end the Iran war appeared to have stalled following a drone strike at a nuclear power plant in the United Arab Emirates. More than two months into the Middle East war, investors are beginning to fret about the economic fallout from the conflict as inflationary pressures mount and what that would mean for the global interest rate outlook.