A sell-off in the US bond market pushed the yield on 10-year Treasuries above 4 per cent on Wednesday for the first time since January, as investors bet that pressure from record oil prices would force the Federal Reserve to raise interest rates this year.

The futures market priced in a 60 per cent likelihood of a rate rise in October, up from less than 50 per cent the day before. As recently as May 8 investors saw virtually no chance of an October rate rise.