Yields on UK and US 10-year government bonds rose to fresh two-year highs on Monday as selling pressure on bonds continues to mount amid the possibility the Federal Reserve could begin to wind down its stimulus as early as September.

The yield on a 10-year gilt rose to 2.739%, a level not seen since August 2011. In the space of a month, gilt yields have risen from 2.3% to hit yesterday’s level.

Meanwhile, US treasury yields hit a high last seen in July 2011, reaching 2.864%.

Investors will be watching with interest to see if there are any more clues about the timing of any possible tapering in the July FOMC minutes, released tomorrow.

Meanwhile, equity markets also sold off, with emerging markets especially hit. Indonesia’s main market entered bear market territory, defined as a fall of more than 20% from a recent peak.

The Jakarta Composite index fell 4.9% on Tuesday, marking a 21% fall from its May high, as investors worried about slowing growth in the country and a growing current account deficit.

Asia markets overall had a tough trading session, with the Nikkei down 2.63% to 13,396 this morning, the Hang Seng 1.72% lower, and the Korean KOSPI down 1.55%.

The FTSE 100 lost 0.53% in yesterday’s session to close at 6,465. The French Cac fell 0.97% while the German Dax shed 0.31%.