Global bonds were on track for their worst month in years as deteriorating government finances, heavy issuance and rising inflation pushed yields higher, with the seven-month-old US-Israeli war on Iran keeping energy costs elevated. The benchmark 10-year US Treasury yield held near its highest level since 2007 at 5.2383% in Asian trading and was set to rise nearly 50 basis points in September, its largest monthly increase in about two years. Higher sovereign yields, which anchor global asset pricing and borrowing costs, have so far had a limited effect on equities, supported by corporate earnings, global economic strength and enthusiasm for artificial intelligence. The dollar was headed for a 2% monthly gain, while oil prices rose on concerns about prolonged supply disruptions and gold edged lower.