At around 02:15 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.0621%, while the yield on the 30-year Treasury bond was also higher at around 2.5806%.
Market focus is largely attuned to the U.S. central bank, after a report from the Wall Street Journal suggested the Fed was likely to cut rates by a quarter-point at the July 30-31 Federal Open Market Committee meeting.
Late last week, dovish comments by New York Fed President John Williams had boosted expectations the central bank could cut rates by 50 basis points. However, the New York Fed sought to clarify Williams’ comments by saying his speech was not about policy action at the upcoming central bank meeting.
The Wall Street Journal report said global growth concerns and ongoing trade uncertainties could prompt the Fed to make further cuts over the coming months.
Meanwhile, the U.S. Treasury is set to auction $36 billion in 13-week bills and $36 billion in 26-week bills.
Elsewhere, oil prices rose more than 1% on Monday. It comes amid concerns that Iran’s seizure of a British tanker last week could lead to supply disruptions in the Middle East.
International benchmark Brent crude traded at around $63.42, up more than 1.5%, while U.S. West Texas Intermediate (WTI) stood at $56.23, over 1% higher.