Euro zone bond yields jump again as oil prices rise; central banks in focus

After the European Central Bank hiked interest rates by 25 basis points last week and left the door open to further tightening, central bank action will be key for markets again this week, with the Federal Reserve, Bank of Japan and Bank of England among those to announce rate decisions.

Markets are expecting rate hikes from the Fed and BOJ, while the BoE is expected to leave policy unchanged in what is likely to be a close decision.

"Rate hike vibes are spreading to the U.S.," Rainer Guntermann, rates strategist at Commerzbank, said, noting that Fed Chairman Kevin Warsh "would face credibility issues if he would not walk his recent hawkish talk".

Beyond the interest rate decisions, traders are also keen to gather clues about what might lie ahead for the path of monetary policy and the economy, especially as energy prices have been climbing again.