US equity market investors will remain focused on government bond market yields this week while gauging economic strength through non-farm payrolls and the Federal Reserve's preferred inflation data, as well as keeping a watch on crude oil prices and Micron's (MU) quarterly results.

* Late Friday, the US 30-year Treasury yield traded at around 5.48%, the highest since 2004, as relatively strong macroeconomic data and Fed-speak highlighting inflation concerns during the week contributed to the increase in bets favoring a back-to-back interest rate increase in October. The 10-year yield was at about 5.18%, the strongest level since 2007 amid mounting concern that the Iran war will extend beyond the US mid-term elections. Higher yields increase the discount rate used to calculate the present value of a company's future cash flows and lower the fair value of its shares.

* Early Monday, US government bond yields rose across the curve. The 10-year jumped 4.9 basis points to 5.23%, the two-year climbed 5.6 basis points to 4.92%, and the 30-year advanced 3.3 basis points to 5.54%.

* US President Donald Trump said he rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting, Reuters reported.

* "Our conditions are clear, and any move toward reopening the Strait of Hormuz is contingent on these conditions being met," Iranian Foreign Minister Abbas Araqchi was cited as saying on social media. "Only a negotiated solution can get them out of this deadlock."

* Front-month West Texas Intermediate crude oil futures surged 3.2% to 95.39 early Monday.

* Macroeconomic data due include non-farm payrolls; personal consumption expenditures index prices, a measure the Fed watches closely while formulating monetary policy; JOLTS job openings; Challenger job cuts; ISM manufacturing; Confidence Board's consumer confidence; and plenty of Fed-speak.

* Corporate results due include Micron Technology, Carnival (CCL), Accenture (ACN), and Nike (NKE).