- After hawkish signals from the Federal Reserve sparked worries that the US central bank will keep raising interest rates, Asian markets and sovereign bonds fell.

- As trading resumed following a holiday, Hong Kong shares underperformed the region, dropping as much as 3.4%. The MSCI Asia Pacific Index fell to its lowest level since December as a result of declines in additional benchmark indices. China is currently taking a weeklong vacation.

- The central bank of Australia left its policy rate steady for a fourth meeting on Tuesday, holding the country's government bonds little changed and warned that additional tightening of monetary policy may be necessary.

- Bond prices declined throughout Asia, with Australia's 10-year bond yield holding close to its highest level since 2011. The adjustments were in line with the decline in Treasuries that occurred when hawkish Fed messaging replaced prior optimism on the agreement to prevent a US government shutdown. The benchmark 10-year note's yield reached its highest level since 2007, while those on the five- to 30-year Treasuries all increased by approximately 10 basis points on Monday. Tuesday in Asia, Treasuries held steady.

- As traders increased their bets on a Fed rate hike in November from the 25% likelihood priced on Friday to a nearly one-in-three chance, the selloff in global bonds gained momentum.