A decades-high rise in US bond yields and local uncertainty in the wake of the federal budget caused the Australian sharemarket to fall on Wednesday, following a recovery from a seven-week low earlier in the week.The ASX 200 closed the day’s trading 1.26 per cent lower to finish at 8496.6, while the All Ords dropped 1.27 per cent, or 112.5 points, to 8717.0.Gold prices were down 0.3 per cent, trading at US$4475.06 per ounce, while Brent crude oil prices dropped 1.26 per cent to US$109.88 per barrel, after US President Donald Trump announced he was an hour away from ordering an attack on Iran, before later calling it off.One Australian dollar is buying 71.09 US cents, up 0.02 per cent.The market was particularly wary of a rise in global bond yields to a multi-decade high, which offset optimism on a resolution to the Iran war. Yields surged globally as a jump in energy prices caused by the war sparked further inflation fears, which increased the likelihood of an interest rate rise in the US.It also follows a volatile start to the week as the market experienced losses on Monday not seen in seven weeks, which were later recouped on Tuesday.The biggest fallers were Siren Gold Limited, recording a 27.71 per cent slump to finish at six cents, while Carnegie Clean Energy closed at just under 8 cents, 24.76 per cent down.Technology companies were some of the biggest movers in the green, with Catapult Sports jumping 17.71 per cent to finish at $3.39. All big four banks experienced declines, with Westpac recording a 2.42 per cent drop to finish at $35.51. ANZ shares fell by 2.11 per cent to $34.77, while NAB was 0.65 lower, trading at $36.80.Commonwealth Bank shares were trading at $162.64 – a drop of 0.15 per cent. VanEck market analyst Jamie Hannah said the banks were navigating uncertainty in the market after housing tax reforms were announced in the federal budget on May 12.“Changes to the (capital gains tax discount) and negative gearing could negatively impact the bank to write new loans,” he said.“The banks are also under pressure from net interest margins as well as some stretch valuations.”Eight out of the eleven ASX sectors recorded drops, with Materials experiencing the biggest decline of 2.12 per cent.Shares in mining giant Rio Tinto fell 1.94 per cent to $175.19, while BHP shares were down 1.89 per cent to $57.59 and Fortescue shares finished 1.55 per cent lower at $21.54.Telecommunications also recorded a 1.67 per cent drop. REA Group shares traded at $164.18 – 2.85 per cent lower – while Telstra shares finished the day at $5.51, 0.63 per cent down.Staples recorded the biggest move in the green, recording a 0.15 climb. Woolworths finished the day 0.88 per cent stronger at $34.51, while Coles also rose 0.77 per cent to $21.51.In company news, major online travel agency Webjet plunged 11.2 per cent to 44 cents, after Virgin Australia announced on Tuesday it would return to the holiday packages business under its own label from July 1.Webjet went into a trading halt on Tuesday after Virgin’s announcement, before resuming normal trading on Wednesday.Shares in James Hardie Industries also fell 0.86 to $26.55 after the building products juggernaut experienced a 75 per cent full-year profit slump.The company said in its financial update on Wednesday that higher inflation and slower home-building activity in North America contributed to the drop.Read related topics:ASX