Treasury yields ease as global borrowing costs tumble

Treasury yields were lower early Monday, tracking a global easing of government borrowing costs amid falling oil prices.The yield on the benchmark 10-year Treasury note fell by around 3 basis points to 4.967%, after last week hitting a 19-year high of 5.041%.The 2-year Treasury note yield was around 1 basis point lower at 4.729%. The 30-year Treasury bond yield was 3 basis points lower at 5.306%.One basis point is equal to 0.01%, and yields and prices move in opposite directions.European bond yields were broadly lower, with both the euro area benchmark — the German 10-year bund — and U.K. 10-year gilts each down by 5 basis points. Japanese markets, typically a global gauge, are closed Monday. Sentiment was buoyed by a fall in crude oil prices, sending stock markets higher, despite continued hostilities in the Middle East. Diplomacy will be high on the agenda this week as global leaders head to the United Nations General Assembly, while Washington ramps up pressure on Tehran to strike a deal to free up trade flows on the Strait of Hormuz. Investors are also still digesting last week's quarter-percentage-point interest rate hike by the Federal Reserve, and assessing whether further rate rises will follow before the end of the year. The European Central Bank also hiked interest rates in the euro zone this month, though the Bank of England opted for a hold at last week's meeting.Data releases this week include S&P Global Purchasing Managers' Index figures on Wednesday and Initial Jobless Claims on Thursday, while speeches by New York Fed President John Williams, the Federal Reserve Bank of Richmond's Tom Barkin and other central bank officials will be closely-watched.