The yield on the benchmark 10-year Treasury note surged to 2.716 percent on Monday, its highest since April 2014, as investors bet on an accelerating economy and inflation.

A falling dollar this month has also helped drive yields higher as traders worry it may reduce the appetite for Treasuries, while boosting inflation. The 10-year yield ended December at 2.43 percent.

The yield on the 30-year Treasury bond was higher at 2.954 percent. Bond yields move inversely to prices.

“The overnight move clearly sets the stage for 2.8 percent on the 10-year and starts to put 3 percent on the table,” wrote Peter Tchir of Academy Securities in a note Monday. “This is a global bond sell-off, some part of which is linked to the realization that the combination of the Fed and ECB is slowly shifting from QE to neutral in the near term and actual combined balance sheet reduction later this year.”

Data will drive trading Monday and the rest of the week. At 8:30 a.m. ET, personal income and outlays are due out, followed by the Dallas Fed’s Texas Manufacturing Outlook survey at 10:30 a.m. ET. January’s jobs data will be out on Friday. balance sheet reduction later this year.

The U.S. Treasury is set to auction $48 billion in 13-week bills and $42 billion in 26-week bills. The size of a four-week bills auction, scheduled to take place Tuesday, is expected to be announced.

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