- The benchmark U.S. 10-year Treasury yield moved above 1.6% early on Monday.
- The U.S. Senate passed a $1.9 trillion economic relief and stimulus bill on Saturday.
European stocks closed higher Monday, as global investors monitored progress toward a U.S. Covid relief bill against the backdrop of rising bond yields.
The pan-European Stoxx 600 closed up 2.2%, with banks adding 3.7% to lead gains as almost all sectors and major indexes advanced. Germany's DAX index rose 3.3% and hit a new intraday high, according to Reuters.
Wall Street also saw a rally Monday after hedge fund manager David Tepper said the recent rapid rise in rates is set to stabilize and it's hard to be bearish on stocks.
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U.S. futures had headed south in the early hours amid further rises in bond yields, with fears that central banks will look to tighten policy sooner than expected. The benchmark U.S. 10-year Treasury yield surpassed above 1.6% on Monday.
The moves came after the Senate passed a $1.9 trillion economic relief and stimulus bill on Saturday, paving the way for extensions to unemployment benefits, another round of stimulus checks and aid to state and local governments.
The Democrat-controlled House will pass the bill later this week. President Joe Biden is expected to sign it into law before unemployment aid programs expire on March 14.
Oil prices were also in focus Monday after a sharp rise during Asian trading hours, but both Brent crude and U.S. crude futures moderated at around $68.84 and $65.64 per barrel, respectively, by the afternoon in Europe.
The rise came after Saudi Arabia said that its oil facilities were targeted by missiles and drones on Sunday. A Houthi military spokesman claimed responsibility for the attacks. Last week, OPEC and its oil-producing allies said the group would keep production largely steady through April.
Mall operators Klepierre and URW jumped 8% and 8.9% respectively, while cruise operator Carnival also climbed 8%. British education group Pearson gained 5.9% to lead the Stoxx 600 after announcing a new direct-to-consumer strategy.
- CNBC's Yun Li, Jesse Pound and Saheli Roy Choudhury contributed to this market report.
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