Global bonds were heading for their worst month in years on Sept. 30 as deteriorating government finances, a glut of new issuance and rising inflation pushed yields higher, with energy costs elevated by the seven-month-old US-Israeli war on Iran. 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 this month, its largest monthly increase in about two years. Yields move inversely to bond prices. The two-year yield slipped to 4.8889% after New York Federal Reserve President John Williams pushed back against expectations of earlier policy tightening, though it remained more than 50 basis points higher for the month. Analysts said the market may be shifting toward a structurally higher-yield environment rather than merely repricing upcoming central-bank meetings. Yields were also near multi-decade highs in Japan, while 10-year government borrowing costs in Germany and France reached 17-year and 18-year peaks this week. Equities largely absorbed the bond-market shock, supported by corporate earnings, global economic strength and enthusiasm over artificial intelligence. The dollar was on track for a 2% monthly gain, while the euro and sterling were set to lose 2.4% each. Oil prices rose on concerns about prolonged supply disruptions, and gold edged lower.