"In spite of the positive surprise created by the strong U.S. payroll report published on Friday, the focus this week will be on the European Central Bank. Expectations of a rate hike at the March Federal Open Market Committee (FOMC) meeting were hardly changed after the release, rightly in our view, reflecting the fact that weakening economic conditions globally warrant at least a pause in the FOMC's tightening course," said rates strategist at Mizuho International, Antoine Bouvet.
It should be a very quiet week for U.S. economic news, with just January consumer credit figures on Monday at 3:00 p.m. ET and wholesale inventory data Wednesday the only data releases of note in the first half of the week.
Oil prices traded strongly on Monday, extending gains seen on Friday after the nonfarm payrolls report was released showing the economy created 242,000 jobs in February, topping expectations.
Front-month Brent crude futures were trading around $39.15 per barrel early on Monday, up around 45 cents from Friday's close. That is almost a third above 2016 lows from mid-February, when prices hit levels not seen since 2003.