Highly-rated government bonds faced selling on Monday, sending the US two-year yield to a near decade high, after the US and Russia avoided direct engagement this weekend during American-led strikes in Syria. The US two-year Treasury yield climbed on Monday as high as 2.386 per cent, from 2.369 per cent at the end of last week. Further down the curve, the 10-year yield rose 2.4 basis points (0.024 percentage points) to 2.8524 per cent. Bond yields rise when prices fall. Across the Atlantic, other ‘haven’ bonds also experienced price declines. The 10-year UK gilt yield rose 3 bps to 1.466 per cent, while yield on German debt of the same maturity climbed 2.4 bps to 0.539 per cent. Brent crude, which rose last week to its highest level since 2014 amid the tick higher in geopolitical uncertainty, was down 1.6 per cent to $71.43 a barrel. Spot gold was little changed at $1,345 a troy ounce. Beyond concerns about deteriorating relations between Russia and the west, investors have been remained fairly confident in the global economic upswing. Assuming all goes according to plan, the Federal Reserve is expected to raise interest rates at least two more times this year, while other central banks are also removing accommodation. This prospect has lifted global yields well off of the historic lows caused by years of bond buying by central banks. The yield on the broad Bloomberg Barclays aggregate government bond index has climbed to roughly 1.25 per cent, more than double the low of 0.54 per cent hit two years ago.