Treasury yields rise as spiking oil prices raise inflation fears

Treasury yields rose on Monday morning, with investors focused on developments in the Russia-Ukraine war, and rising oil prices.

The yield on the benchmark 10-year Treasury note rose 4.8 basis points to 1.765% at around 7 a.m. ET. The yield on the 30-year Treasury bond added 2.6 basis points to 2.174%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Moscow claimed Monday that it will stop attacks in four Ukrainian cities, including Kyiv, to allow the evacuation of civilians.

Evacuation attempts were halted over the weekend after Russian forces were accused of violating cease-fires in the cities of Mariupol and Volnovakha.

U.S. Secretary of State Antony Blinken said Sunday that the United States and its allies are considering banning Russian oil and natural gas imports in response to the country’s invasion of Ukraine.

Meanwhile, West Texas Intermediate crude futures briefly topped $130 a barrel on Sunday evening, its highest point since 2008, amid concerns of a ban on Russian oil and gas.

There are concerns that a ban on Russian oil and gas would increase the risk of stagflation, where inflation rises but economic growth slows.

Investors will, therefore, be watching inflation data, due out later in the week, even more closely.

There are no major economic data releases slated to come out on Monday.

Auctions are scheduled to be held for $60 billion of 13-week bills and $51 billion of 26-week bills.

— CNBC.com staff contributed to this market report.