NEW YORK – A gauge of global equity markets declined on Monday as US bond yields moved closer to the 3% level that has unsettled investors in recent months, while a fall in commodity prices pressured materials stocks.

US bond prices fell, with the ten-year yield hitting its highest in over four years at 2.99%. Investors are worrying about the growing supply of government debt and accelerating inflation as oil and commodity prices have been rising in recent weeks.

Benchmark ten-year notes last fell 7/32 in price to yield 2.9752%, from 2.951% late on Friday.

"That three% on the ten-year is hugely important and many very bright people have thought of three% as the tipping point, so to speak, in terms of providing an alternative to equities and also providing a shift in the narrative," said Peter Kenny, senior market strategist at Global Markets Advisory Group, in New York.

Commodities sold off after the United States hinted it might relieve sanctions on Russia's biggest aluminium producer United Company Rusal.

Three-month aluminium on the London Metal Exchange, which hit a seven-year high on Thursday, was last down 8.7% at $2 254.50/t. Shares of aluminium company Alcoa tumbled 13.51%.

Spot gold dropped 0.8% to $1 324.66/oz.

In equity markets, the pan-European FTSEurofirst 300 index rose 0.35%. MSCI's gauge of stocks across the globe shed 0.29%.

The climb in debt yields helped push the US dollar to a seven-week high, putting additional pressure on commodities and sending the euro and yen lower.

The dollar index rose 0.67%, with the euro down 0.65% to $1.2206. The Japanese yen weakened 0.97% versus the greenback at 108.70 per dollar.

Oil prices were volatile, with crude recovering from earlier losses. Investors juggled downward pressure after Iran squashed hopes that OPEC would extend its production cap pact with support on fears US sanctions could dampen Iran's output.

US crude settled up 0.35% at $68.64/bl and Brent was last at $74.71, up 0.88%.

US stocks were little changed ahead of earnings from some big names in the technology and consumer discretionary sectors this week, with Amazon.com -0.6% and Microsoft flat.

The Dow Jones Industrial Average fell 14.05 points, or 0.06%, to 24 448.89, the S&P 500 gained 0.14 points, or 0.01%, to 2 670.28 and the Nasdaq Composite dropped 17.53 points, or 0.25%, to 7 128.60.

All eyes are on US earnings, with more than 180 companies in the S&P 500 reporting results this week. They include Alphabet, Facebook, Boeing and Chevron .

They are expected to report their strongest first-quarter profit gains in seven years, at around 20%. Of the 92 companies that have reported through Monday morning, 77% have topped profit expectations, according to Thomson Reuters data.