Global government financing expenses moved broadly lower on Monday morning, with U.S. Treasury yields following the decline as oil prices dropped. The benchmark 10-year Treasury yield fell roughly 3 basis points to 4.967%, after reaching its highest level since 2007 last week.

The 2-year Treasury yield edged down about 1 basis point to 4.729%, while the 30-year Treasury yield slipped 3 basis points to 5.306%. A basis point equals 0.01%, and yields move inversely to bond prices. Market data shows the 10-year note at 4.959% (down 0.03), the 1-month bill at 3.902% (up 0.01), the 1-year note at 4.413% (unchanged), the 2-year note at 4.72% (down 0.02), the 30-year bond at 5.296% (down 0.03), the 3-month bill at 4.095% (up 0.01), and the 6-month bill at 4.269% (down 0.003).

European bond yields also moved lower, with the eurozone's benchmark German 10-year bund and the UK 10-year gilt both dropping 5 basis points. The Japanese market, often seen as a global bellwether, was closed on Monday for a holiday.

Despite ongoing Middle East conflict, oil-related news lifted market sentiment and pushed equities higher. World leaders are set to gather at the United Nations General Assembly, with diplomatic efforts taking center stage this week as parties seek an agreement to restore trade navigation through the Strait of Hormuz.

Investors continue to digest last week's Federal Reserve rate decision and assess the likely magnitude of rate hikes before year-end. The European Central Bank has already completed its latest increase, while the Bank of England held rates steady at its meeting last week. Upcoming data releases include the S&P Global Purchasing Managers' Index (PMI) on Wednesday and initial jobless claims on Thursday. Speeches from New York Fed President John Williams, Richmond Fed President Tom Barkin, and other central bank officials will also be closely watched by the market.