- The House of Representatives passed President Joe Biden's $1.9 trillion stimulus package early on Saturday.
- The benchmark 10-year Treasury yield topped 1.6% last week.
The 10-year U.S. Treasury yield fell on Monday, staying below the high water mark from last week's surge.
The 10-year yield has pulled back from its highs of last week, when it briefly topped 1.6% and spent significant time above 1.5%. The jump last week brought the yield above the dividend yield of the S&P 500.
While yields are still low relative to history, the rapid increase in recent week has made some investors uneasy.
"When we analyze historical examples of a spike in yields, we find the majority of the time equities continue to rise in the intermediate-term, but also found that few declines were major," JC O'Hara of MKM Partners said in a note to clients. "Return Risk statistics are also not the strongest due to the increase in the few small left tail events."
The move lower for much of the Treasury yield curve came as global stocks rose on Monday.
The House of Representatives passed President Joe Biden's $1.9 trillion stimulus package early on Saturday. The coronavirus relief spending package will now be considered in the Senate.
February's final read for Markit's U.S. manufacturing purchasing managers' index came in at 58.6, showing an expected expansion of the sector. Economists polled by Dow Jones were projecting a read of 58.5.
Auctions were held Monday for $54 billion of 13-week bills and $51 billion of 26-week bills.
— CNBC's Maggie Fitzgerald contributed to this report.