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 Australian sharemarket has fallen at the open as higher oil prices and growing inflation concerns sent a shiver through the bond market over the weekend.

Australian markets are set to begin the week in negative territory, with ASX 200 futures pointing to a drop of around 0.1 per cent on Monday after both US indexes fell sharply…