Bonds: Oil price gains push yields higher across the board
These were the movements in some of the most widely-followed 10-year sovereign bond yields:
US: 2.98% (+3bp)
UK: 1.44% (+4bp)
Germany: 0.56% (+3bp)
France: 0.81% (+4bp)
Spain: 1.32% (+4bp)
Italy: 1.87% (+11bp)
Portugal: 1.73% (+6bp)
Greece: 4.20% (+6bp)
Japan: 0.05% (+1bp)
Longer-term bond yields raced higher across the world on Tuesday, stoked by the tensions around the Iran nuclear deal.
Feeding the upwards move, crude oil futures hit 42-month highs overnight after the White House announced it was intending to make an announcement on the so-called Joint Comprehensive Plan of Action on Tuesday night.
Nevertheless, the day before, during the bank Holiday, at least three top US central bank officials had weighed in with 'dovish' sounding remarks.
They included the new Atlanta Fed chief Raphael Bostic, who told reporters that "some overshoot" on the central bank's preferred inflation gauge was "fine".
He also gave short shrift to the impact thus far on the economy from the recent rise in oil prices, while expressing surprise at the fact that wages in the US were not seeing more broad-based gains by sectors - although he expected that to happen at some point.
In a similar vein, the Dallas Fed's Kaplan said that while short-run cyclical forces were strengthening, longer-run trends that were pushing down on prices and the path for interest rates would compensate.
Meanwhile, in the euro area periphery, it was all about italy, after the country's president opened the door to fresh elections after the latest round of talks aimed at creating a stable government coalition fell through.
According to analysts, late July was the most likely date for a new vote which might conceivably see the two main anti-establishment parties, the Five Start movement and the League join forces.