Treasury yields were flat on Monday as investors looked ahead to fresh data and central bank commentary after closing out a week when market yields moved higher.
The yield on the 10-year Treasury note dipped less than a basis point to 4.418%, while the 2-year Treasury yield traded more than a basis point lower at 4.287%.
Yields and prices have an inverted relationship and one basis point is equivalent to 0.01%.
Investors are awaiting the latest housing and manufacturing data this week that could give investors better insight into the state of the economy. Initial jobless claims data is due out on Thursday.
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A preliminary reading of the November S&P Global Flash U.S. Manufacturing PMI Purchasing Managers' Index Composite, which is due out Friday, is expected to show business activity across the manufacturing and service sectors expanded slightly from the prior month, up to 55.0 from 54.1, according to a FactSet consensus estimate.
Yields have shot up in recent weeks in the wake of the election due in part to the hope that Trump's presidency could boost economic growth. It comes as inflation was seen ticking up slightly in October, and as President-elect Donald Trump's anticipated fiscal policies weigh on the wider economic outlook.
"We argued that the initial knee jerk move on the back of potential Trump victory is likely a positive one, but also that the sustainability of the move will depend on bond yields behavior, and on the sequencing of policies," said Mislav Matejka, head of global and European equity strategy in a Monday note.
Money Report
"If 10-year yields approach 5%, that will be more challenging to be absorbed positively, in our view," he added.
Investors continue to digest comments from Federal Reserve Chair Jerome Powell, who suggested late last week that the central bank may be less aggressive in its rate-cutting agenda going forward.
