Hawkish European Central Bank (ECB) minutes helped bring yields off their lows.
Corporate earnings were also in focus in Japan. "But even if they do, they would do it in a way that won't disrupt the market".
US Treasury undersecretary David Malpass dismissed concerns about China's bond-buying intentions.
With concerns starting to rise about a rise in inflation due to the recent strength in oil prices it is understandable that bond markets might be nervous if a normally large buyer of U.S. treasuries either stops buying them or even starts to sell large amounts.
The US administration is considering several new tariffs in the coming weeks, including broad restrictions on steel and aluminium imports and punitive actions against China arising from an investigation into Beijing's intellectual property practice.
Rising oil prices could fan inflation down the road, which could be detrimental to some countries that have been prone to high inflation. Toyota fell 1.41%, Honda lost 1.93% and Canon shed 0.44%.
The dollar had slumped as the Bank of Japan's move to trim its purchases of long-dated government bonds (JGB) this week reverberated across currency markets. "I don't think that's worked out so poorly for the U.S". But it highlighted the fact that unwinding of central bank stimulus will be a main theme this year.
"President Xi Jinping has plenty of more targeted tools to pressure the United States and retaliate against trade measures", said analysts at Eurasia Group.
The 10-year JGB futures were up 0.10 in price in morning trade, paring some of their total losses of 0.37 point over the past two days after the BOJ on Tuesday reduced its buying in JGBs with more than 10 years to maturity.
Dark Souls: Remastered confirmed for PS4, Xbox One, PC and Switch
For non-Nintendo fans looking to get their Souls game on, the remastered version is likely to come to the Xbox One and PC as well. The trailer that coupled the announcement was simple enough, showing only a slow zoom-in on an extinguished fire.
Inflation pressures have the capacity to prompt the Federal Reserve to drive the USA base rate higher, which would mean market interest rates (bond yields) also have to move higher.
Overnight jitters in global bond markets triggered a flare-up in investor caution that knocked the Australian sharemarket lower again today.
The MSCI world equity index, which tracks shares in 47 countries, was flat. Optimism about upcoming US earnings also helped USA stocks, which resumed their 2018 rally to hit record closing highs.
The S&P financial index.SPSY was the best performer among the S&P 500's 11 major sectors with a 0.9 percent rise, helped by gains in Berkshire HathawayBRKa.N, JPMorganJPM.N and Wells FargoWFC.N.
GBPUSD - slipped below the 1.3500 area yesterday raising the prospect of a decline back though the 1.3450 level towards support at the 1.3300 area.
Platinum was up 0.9 per cent at $US973.60 an ounce, after hitting a almost four-month high of $US973.90. Investors are taking profits in high-flying hi-tech shares.
But the euro zone ERP of around 4.5 percent is running around its 30-year average, suggesting stocks aren't overvalued relative to bonds, and the Japanese ERP of 4 percent shows stocks are still cheap, SocGen says.
Some investors said risk sentiment had been boosted by an apparent easing in tensions in the Korean peninsula after North and South Korea agreed to future talks in their first official dialogue in more than two years.
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