U.S. Treasury yields fell to their lowest levels since November on Monday after a report showed that U.S. manufacturing grew at a substantially slower pace in January.
New order growth plunged by the most in 33 years, driving overall factory activity to an eight-month low. The report sent Treasury prices back into positive territory, after the bonds had earlier weakened on solid European growth and some calming in emerging market assets.
"Overall this is a weak number and it does suggest some dramatic slowing in economic activity," said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities in New York.
"One can put most of this down to the unseasonably cold weather that we've had over the past two months, we've seen that in other economic reports. The big question is whether that proves to be temporary and we think that it will," he said.
Treasury yields had earlier edged up after data showed that manufacturers around the world enjoyed a solid start to the year as order books swelled, though a struggle for growth in China and a downturn in France took the shine off the overall picture.