New Delhi, July 15 -- U.S. Treasury bond markets continued to ratchet up tension in global finance on Tuesday, with traders watching developments in the Gulf region, a key inflation report, and testimony from new Federal Reserve Chairman Kevin Warsh as yields hit multiyear highs.

Benchmark 10-year Treasuries have risen nearly 20 basis points since the start of the month, and were last marked at 4.621%, the highest since reaching 4.66% on May 19.

The gains in crude oil prices-and their immediate impact on inflation metrics-is a crucial aspect to the move, as is the hawkish tone heard recently from Fed officials and the lack of definitive guidance under the new leadership of Warsh.

Interest-rate sensitive 2-year notes, meanwhile, have ju...