Traders continued to coach their consideration on bond markets after a drop within the value of U.S. authorities debt final week. Ten-year Treasury notes recovered some floor Monday, sending yields all the way down to 1.673%, from 1.729% Friday. Yields fall when bond costs rise.

Yields have climbed for seven consecutive weeks, denting segments of the inventory market that had benefited from a number of years of low rates of interest. Tech shares, specifically, have suffered from the soar in longer-term authorities borrowing prices. Future earnings are price much less when bond yields rise.

The tech-dominated Nasdaq-100 skidded to its fourth week of losses in 5 on Friday. Many traders anticipate bond yields to maintain rising because the financial system picks up pace, posing a problem to tech shares that powered the broader market larger in 2020.

“There may be extra upside for U.S. bond yields than there’s draw back,” mentioned Edward Smith, head of asset allocation analysis at U.Okay. funding agency Rathbone Funding Administration. Shares “that delivered distinctive returns final yr are in all probability not going achieve this properly for now,” Mr. Smith added.

That doesn’t imply traders ought to abandon tech shares, in line with Mr. Smith. Shares of giants similar to Apple, Microsoft and Fb have proved resilient on some days when Treasury yields have shot up, he mentioned. Nonetheless, Mr. Smith added that cash managers ought to be cautious about corners of the market with elevated valuations, similar to shares in electric-vehicle firms.

The Federal Reserve has up to now indicated that it isn’t involved in regards to the rise in bond yields. Chairman

Jerome Powell

is scheduled to talk at a dialogue about central-bank innovation hosted by the Financial institution for Worldwide Settlements, beginning at 9 a.m. ET.

Knowledge on gross sales of present properties are due at 10 a.m., giving traders a recent view into the booming housing market. Economists anticipate gross sales to have slipped in February, hampered by rising costs and poor climate in components of the nation.

In currencies, Turkey’s lira slumped 9.3% to commerce at 7.95 per greenback after the abrupt alternative of the nation’s prime central banker late final week. The slide could add to traders’ nervousness round emerging-market belongings, in line with

Jane Foley,

head of foreign money technique at Rabobank.

Mixed with issues in regards to the trajectory of U.S. authorities bond yields, the stoop in Turkey’s foreign money means there’s “loads of scope for uneven buying and selling situations” in broader monetary markets, Ms. Foley mentioned.

In abroad markets, the Stoxx Europe 600 ticked down 0.3%. Shares of

AstraZeneca

rose 0.8% after the British drugmaker mentioned its Covid-19 vaccine was proven to be secure and 79% efficient in stopping symptomatic illness in U.S. medical trials.

Asian markets had been blended by the shut of buying and selling. China’s Shanghai Composite Index rose 1.1%, whereas Hong Kong’s Grasp Seng Index ticked 0.4% decrease. Japan’s Nikkei 225 dropped 2.1%, led decrease by automobile makers after a hearth at a manufacturing unit owned by semiconductor producer

Renesas Electronics.

Write to Joe Wallace at Joe.Wallace@wsj.com