Major U.S. indexes posted declines as yields on U.S. government debt rose ahead of Asia’s Tuesday trading day.

U.S. stocks closed lower after the yield on the 10-year Treasury note rose above 2.7 percent, its highest levels since April 2014. The rise in bond rates this year has been driven by concerns over higher inflation.

“There were no major news behind the move higher in yields, but given the recent break of key resistance levels, core yields now have more freedom to move higher,” Rodrigo Catril, senior FX strategist at National Australia Bank, wrote in a morning note.

Major indexes stateside had closed at record highs last week on the back of upbeat corporate earnings. As of Monday morning, 78 percent of S&P 500 companies that have announced results have topped earnings expectations, according to FactSet. Several tech heavyweights, including Facebok and Apple, are due to report this week.

On Monday, the Dow Jones industrial average declined 0.67 percent, or 177.23 points, to close at 26,439.48, the S&P 500 lost 0.67 percent to end at 2,853.53 and the Nasdaq composite shed 0.52 percent to finish at 7,466.51.

Back in Asia Pacific, futures implied a lower open for Japanese equities at the market open. Nikkei futures traded in Chicago were off by 0.29 percent at 23,560 compared to the benchmark’s previous close. Osaka futures were lower by 0.38 percent at 23,540.

Down Under, the S&P/ASX 200 was lower by 0.26 percent in the early going.

The move higher in bond yields overnight saw the dollar edge up against a basket of currencies. The dollar index rose more than 0.3 percent to trade at 89.365. Against the yen, the U.S. currency inched higher to trade at 108.97.

The euro slipped to trade at $1.2379.

On the commodities front, oil prices were lower on Monday on the firmer dollar. Brent crude futures fell 1.5 percent to settle at $69.46 per barrel and U.S. West Texas Intermediate crude gave up 0.9 percent to settle at $65.56.

Hong Kong-listed Ping An Insurance announced in a Monday filing that its application to spin-off its health care and technology unit had been approved by the Hong Kong Exchange. The company said the application proof of the unit’s prospectus will be made available Jan. 30.

Elsewhere, Japan’s Renesas Electronics is negotiating a purchase of Maxim Integrated, a U.S. semiconductor maker, for a potential total of $20 billion, although sources said a deal isn’t imminent.

Here’s the economic calendar for Tuesday (all times in HK/SIN):

• 7:50 a.m.: Japan retail sales
• 8:30 a.m.: Australia NAB business confidence survey

— CNBC’s Fred Imbert contributed to this report.