U.S. Treasury yields bounced higher on Monday morning, continuing their upward momentum from last week as the Federal Reserve moves closer to easing off its pandemic-era policies.

The yield on the benchmark 10-year Treasury note climbed above the key 1.5% level in early trading, at one point rising above 1.51%. The yield increased by 1.7 percentage points to 1.478% as of 10:00 a.m. ET. The yield on the 30-year Treasury bond rose about 1.4 basis points to 2%. The yields on both the measures and the CAD are at or near their peak levels for about three months. Prices are inversely related to yields and one basis point equals 0.01%. Yields change in the opposite direction to their prices.

Treasury yields rose last week as the Fed suggested that it might soon reduce its asset buying program. Additionally, a rising number of Fed officials now see a rate hike in 2022, according to projections released by the central bank last week.

“I think the big untold story of last week is the move in yields, which was pretty consistent across the board, and the bond market is starting to smell something that the equity market hasn’t quite realized yet, otherwise we would see much more differentiation,” Allianz chief economic advisor Mohamed El-Erian said on “Squawk Box.“

New York Fed President John Williams said on Monday that the U.S. economy is “close to meeting the ‘substantial further progress’ standard we laid out last December as the bar for beginning to taper our asset purchases.”

Rising wages, supply chain problems and inflation have all contributed to the rise in yields.

Williams explained that a ten-year nominal Treasury yield in the current range simply cannot have long-run inflation expectations.

Jerome Powell, the Fed chairman will speak to the U.S. Senate Tuesday. He then speaks at the European Central Bank Forum Wednesday. Investors are likely to be watching for more information about when the Fed will reduce its bond-buying program.

Lael Brainard, Fed Governor, will be speaking Monday at the National Association for Business Economics annual conference at 12:50. ET

ET. Also, the reading for August was revised up from previous month.

Meanwhile, investors are also keeping an eye on the progress of the $1 trillion infrastructure bill in Washington.

House Speaker Nancy Pelosi said Sunday She expects that the bill will be passed this week. However, the Monday date for voting could change.

To avoid a shutdown Congress needs to pass a budget before September ends. Additionally, lawmakers need to figure out how to raise or suspend October’s debt ceiling to prevent the United States from defaulting on its debt.

On Monday auctions are set to take place for $42 Billion of 13-week Bills, $42 Billion of 26 Week Bills, $60Billion of 2-year Notes, $61Billion of 5-year Notes, $42 Billion of 26-week Bills, and $52 billion each of the two-year notes.

— CNBC’s Yun Li and Jeff Cox contributed to this market report.