Selling drove global bond yields to major new highs on Tuesday as renewed fighting in the Middle East lifted oil prices above $90 a barrel and put pressure on stock markets around the world.
China said it had serious concerns about Taiwan's presence at the annual Pacific Islands Forum in Palau, warning of "consequences" after the democratically ruled island attended the group's opening ceremony on Monday.
U.S. officials urged Group of 20 country finance leaders on Monday to push harder for economic growth as the best way to counter concerns over rising global debt levels.