SINGAPORE/LONDON - World stocks rose on Tuesday and Treasury yields steadied, allowing a bit of a breathing room for the US dollar as investors took stock of the debt load of the world's biggest economy.

Investors were still processing Monday's market moves when Treasuries initially sold off sharply on worries about the US fiscal position, and stocks struggled on Wall Street, before both rebounded in late trading.

That calm was maintained in Asian and European trading, where broad equity indices were each up around 0.1 percent and Germany's Dax hit a new record high, though S&P 500 share futures dipped.

Moody's late on Friday downgraded the US credit rating, underscoring worries about the impact of a major tax cutting bill proceeding through Congress, which faces a crucial vote later this week.

The US 10-year yield was last down 3 basis points at 4.44 percent having hit a one-month high of 4.56 percent on Monday, and the 30-year bond yield fell a similar amount to 4.91 percent after hitting an 18-month high of 5.037 percent in the previous session.

"The quick recovery was a bit of a surprise even though we were in the camp of it only having a limited impact," said Mohit Kumar, chief Europe economist at Jefferies. He said the downgrade was not unexpected given concerns over US debt and deficits.

However, in a sign of broader market nervousness, Japanese super-long bond yields soared to all-time highs on Tuesday, with the immediate precipitating factor a poor auction of 20-year securities.

The Japanese 20-year yield jumped as much as 15 bps to 2.555 percent its highest since 2000, and the 30-year yield hit a record high of 3.14 percent.

JGBs are no exception to the global trend of rising yields, said Hirofumi Suzuki, chief currency strategist at Sumitomo Mitsui Banking Corp.

"Market participants are ... assessing demand during each auction, and stability remains elusive. I think that the upward pressure is likely to persist for the time being."

Uneasy RBA

Global investors had a few other things to process too on Tuesday, and the Australian dollar slipped 0.5 percent to $0.64255 after the Reserve Bank of Australia lowered interest rates as expected, citing a darker global outlook, though it also remained cautious on further easing.

"With the RBA sounding increasingly uneasy, the path of least resistance for the currency may remain lower," said Charu Chanana, chief investment strategist at Saxo in Singapore.

"Especially if domestic data softens further or global risks flare up again."

In currency markets, the euro was up 0.2 percent at $1.1265, holding onto Monday's 0.6 percent gain, and the dollar was also down 0.38 percent against the Japanese yen at 144.27, again after sliding Monday.

In commodities, oil prices nudged higher as investors tried to get a grip on a potential breakdown in talks between the US and Iran over Tehran's nuclear activity and weakened prospects of more Iranian crude supply entering the market.

Brent futures were last up 0.34 percent to $65.75 a barrel.

Gold slipped 0.2 percent to $3,220 per ounce as safe haven demand dipped.