The U.S. 10-year Treasury yield drifted lower on Monday as stocks hit record highs on the back of strong economic data.

The yield on the benchmark 10-year Treasury note fell to 1.714% in afternoon trading. The yield on the 30-year Treasury bond ticked down to 2.349%. Yields move inversely to prices.

The weakness in yields came as the Dow and S&P 500 set record highs on Monday. The moves follow a nonfarm payrolls on Friday that showed 916,000 added jobs. This was more than analysts expected and marked the fastest growth since August 2020. The unemployment rate declined to 6%.

Additionally, the services purchasing manager's index from the Institute for Supply Management showed faster than expected expansion in March, and the reading of 63.7 was the highest on record.

Last week, President Joe Biden unveiled the infrastructure and economic recovery package, which includes spending on transportation, broadband and affordable housing. The plan will be funded in part by a rise in the corporate tax rate to 28%.

It faces some opposition from Republicans, however, with Sen. Roy Blunt of Missouri on Sunday urging the Biden administration to pare back the package. He called for a shift in focus to infrastructure such as roads and airports.

Meanwhile, the coronavirus vaccine rollout continues to accelerate. The U.S. reported another daily record of new Covid vaccinations Saturday, pushing the weekly average of new shots per day above 3 million.

However, A report from the Commerce Department showed that factory orders slowed month-over-month in February.

There are no major Treasury auctions slated for Monday.

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