Shares skid in Asia as oil, yields stay high

SYDNEY, Aug 31 : Share markets slipped on Monday in Asia as fresh fighting broke out between the United States and Iran, lifting oil prices, while bond yields stayed elevated after investors narrowed the odds on a U.S. rate hike.Brent futures climbed 1.4 per cent to $89.38 a barrel after U.S. forces struck two of Iran's launchers on its island of Larak on Sunday. In response, Iran was attacking U.S. forces stationed in Jordan, Fox News said.The resulting risk to inflation kept bond markets on edge after Federal Reserve Chair Kevin Warsh emphasised on Friday the central bank had work to do to control inflation.Markets reacted by lifting the probability of a September rate increase to 57 per cent, shoving short-term Treasury yields sharply higher and flattening the curve. "We continue to exp