The 10-year U.S. Treasury yield eased slightly on Monday morning but held above 1.51% as investors digested a rise in a key inflation indicator index.
Treasury yields rose on Friday, after the Commerce Department reported that the core personal consumption expenditures price index rose 3.4% in May from a year earlier.
This marked the fastest increase since April 1992 and met the Dow Jones estimate for gains in the PCE index.
Investor attention this week will be focused on the June jobs report, which the Labor Department is set to publish on Friday.
Economists are expecting that nonfarm payrolls increased by 683,000 in June. While such a robust reading would top the 559,000 in May, it would still be below the 1 million figure some had hoped a recovering U.S. economy could post as it emerged from the Covid-19 crisis.
Meanwhile, President Joe Biden on Saturday said that he doesn't plan to veto a bipartisan infrastructure bill if it comes without a reconciliation package, walking back on a statement made last week.
This came after Biden announced last Thursday that a bipartisan group of lawmakers had agreed an infrastructure deal, following weeks of negotiations.
There are no major economic data releases due out on Monday.
Federal Reserve Vice Chair for Supervision Randal Quarles is due to speak about central bank digital currency at the 2021 Utah Bankers Association Annual Convention, at 1:10 p.m. ET on Monday.
Treasury auctions are scheduled to be held Monday for $57 billion of 13-week bills and $54 billion of 26-week bills.
— CNBC's Thomas Franck and Emma Newburger contributed to this market report.