Global bonds were heading for their worst month in years as deteriorating government finances, a glut of new issuance, rising inflation and elevated energy costs drove yields higher. The seven-month-old US-Israeli war on Iran has kept energy prices elevated. Benchmark 10-year US Treasury yields held near their highest level since 2007 at 5.2383% in Asia and were on track to rise nearly 50 basis points for the month, their largest monthly increase in about two years. Bond yields move inversely to prices. The 2-year Treasury yield slipped to 4.8889% after New York Federal Reserve President John Williams pushed back against expectations of earlier policy tightening, although it remained more than 50 basis points higher for the month. Yields also approached multi-decade highs in Japan, while 10-year government bond yields in Germany and France reached 17-year and 18-year peaks. Equities remained comparatively resilient, supported by corporate earnings, global economic strength and enthusiasm over artificial intelligence. The dollar was set for a 2% monthly gain as higher US yields supported the currency, while the euro and sterling each faced 2.4% monthly declines. Oil prices rose on concerns that the Middle East war could prolong supply disruptions, with Brent at $103.16 a barrel and US crude at $89.49. Spot gold fell 0.2% to $4,171.93 an ounce.