HONG KONG -- Asian bonds fell Tuesday dragged down by worries about the effectiveness of Washington's $700-billion bailout plan and with rising oil prices also adding to inflationary concerns in the region.

Benchmark risk aversion measures rose, but remained below the record highs reached last week before the US Treasury presented its plan to tackle the country's worst financial crisis since the Great Depression of 1929.

The iTRAXX Asia ex-Japan high-yield index moved out by 20 basis points (bps) to 660 bps. The equivalent investment-grade index widened by 10 bps to 180.

But trading was thin as financial markets in Tokyo were shut for a holiday.

"The devil is in the details. Everyone wanted to buy the rumor and sell the fact but the fact is not out yet, so people are taking profits," said a Singapore-based trader.

The rescue plan for the battered US financial system looked set to drag into next week as Washington lawmakers haggled over how exactly they could make Wall Street pay for its rescue.

And ahead of the Nov. 4 US elections, where the economy is the number one issue, lawmakers want to sound tough on such hot-button issues as the pay of reckless executives.

Adding to Asia's worries are resurgent oil prices, which recently caused havoc in the region sending inflation to multi-year highs.

Overnight, oil prices raced up nearly 16 percent, marking the biggest one-day gain on record. They shed some of their gains on Tuesday as investors booked profits amid doubts over the bailout plan.

Malaysian credits were additionally hit as political uncertainty dragged on.

Malaysia's five-year credit default swaps (CDS) -- insurance-like contracts that protect against defaults and restructuring -- widened by 10 bps to 155 bps.

The opposition party in Malaysia said it had opened talks with the government on the current political impasse, a claim denied by the government.

Meanwhile, bonds from the Philippines, one of the most active debt issuers in the region, were flat to marginally weaker.

"All eyes are on the bailout plan and how it is going to work out -- there is very little activity," said a Manila-based trader.

Bonds from Manila due in 2032 were barely changed at 95.875/96.375 cents, but the cost of protecting Philippine debt rose.

Philippine five-year CDS climbed 10 bps to 268/273 bps.