Asian bonds followed US Treasuries lower as concerns over government finances mounted, while higher oil prices added to fears that inflation will quicken, Bloomberg reported. Sovereign bonds in Australia and New Zealand dropped, and Japan's 10-year yields extended gains after hitting multi-decade highs on Monday, while the US 30-year yield rose to 5.32%, a level last seen in June 2007. Oil advanced as Middle East peace prospects dimmed, with Brent up 0.3% to $91.10 a barrel after U.S. President Donald Trump said he wasn't interested in extending the expiring agreement with Iran and fighting flared anew in Lebanon. AT Global Markets analyst Nick Twidale said the mix of elevated oil, higher yields and renewed geopolitical risk is likely to keep markets volatile.The climb in Treasury yields reflected investor angst over surging government spending, heavy long-dated debt sales and inflation that has stayed above the Fed's target for five years, according to Bloomberg. Asked whether he would seek to extend the June memorandum of understanding, which technically expired Monday, Trump told reporters "no." Asian stocks erased earlier gains, with MSCI's regional gauge down 0.1%, though South Korea rose 1.2% as traders returned from a holiday and chipmakers gained on Anthropic's surging sales. Gold extended a two-week advance to around $4,425 an ounce as easing Fed-hike expectations pressured the dollar, and China's 10-year bond futures hit a record after data showed a deepening slowdown. In corporate news, Nvidia agreed to spend as much as $105 billion to support a new Ohio data-center campus to be leased by OpenAI, RTX won a $23 billion US Navy Tomahawk contract, and BHP's profit rose almost a third as copper revenue overtook iron ore for the first time.