Oil's Rally Revives Inflation Concerns Amid Mixed Markets

Global financial markets were mixed on Tuesday as oil prices held their gains from the previous session. The four-day rally in oil has revived concerns about inflation ahead of key US consumer price data later this week.

The US Treasury market was affected, with government bonds in Asia Pacific following Treasuries lower. Australian and New Zealand bonds also dropped after US 10-year yields rose six basis points on Monday to 4.71%. Treasury futures fell as well, with no cash Treasury trading during Asian hours Tuesday due to a public holiday in Japan.

However, gold prices advanced, reaching $4,400. The move higher in oil and lower in bonds has raised concerns about inflation and its impact on interest rates.