SYDNEY — Australian shares tumbled nearly 2% on Thursday, sinking to their lowest level in four months as climbing global bond yields, elevated oil prices and a late sell-off on Wall Street rattled investors at the start of the new quarter.

The benchmark S&P/ASX 200 index was down 171.1 points, or 1.95%, at 8,618.2 as of 1:46 p.m. AEST, wiping out Wednesday's rally and then some. The index had closed Wednesday up 80 points, or 0.92%, at 8,789.3.

The decline pushed the market to its lowest level since mid-June, with every sector in the red. About 50 billion Australian dollars was wiped off the value of the market by early afternoon, according to ABC News, when the index was down about 1.8%.

Bond yields drive the sell-off

Rising borrowing costs were at the center of the slide. Australia's policy-sensitive three-year government bond yield climbed another 3 basis points to 4.98%, after reversing a sizeable intraday drop on Wednesday.

Overseas, U.S. long-term Treasury yields continued their steep climb. The 10-year yield rose 5 basis points to 5.29%, near its highest level since 2007, while the 30-year yield climbed 6 basis points to 5.63%, around its highest since 2002.

Market Index lead writer Kerry Sun said Thursday's session felt like a reminder that "nothing has actually changed," noting that Wednesday's rebound had come despite persistent pressure from yields and oil prices. Brent crude remained above $100 a barrel.

The drop came a day after the........

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