U.S. Treasury yields climbed on Monday as gains in riskier markets such as equities made traditionally safer bonds less appealing.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Investors considered fresh developments in the banking sector. CNBC reported over the weekend that the deposit outflow from small banks to industry giants like JPMorgan Chase and Wells Fargo has slowed in recent days. Meanwhile, Bloomberg reported that U.S. authorities were considering expanding an emergency lending program for banks, which could give First Republic more time to shore up its liquidity.
First Citizens Bank is set to buy SVB assets worth around $72 billion at a $16.5 billion discount, while around $90 billion worth of SVB's holdings are expected to be left "in receivership for disposition by the FDIC," according to an FDIC statement.
Concerns about both regional and global banks have spread rapidly in recent weeks as investors fretted about whether SVB's collapse and Credit Suisse's takeover by UBS were a sign of sector-wide contagion.
The turmoil also played a role in the Federal Reserve's latest policy decision, its chairman Jerome Powell said last week after the central bank hike interest rates by 25 basis points. It also hinted at a potential pause of rate increases on the horizon.