Bonds

US Treasury yields higher amid Lockhart speech

Traders work in the S&P 500 options pit at the Chicago Board Options Exchange.
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U.S.government debt prices extended losses on Monday, pushing yields higher, as investors shift focus to scheduled speeches from U.S. Federal Reserve members and retail data this week, now the much-anticipated payroll data is out of the way.

On Monday, Atlanta Fed President Dennis Lockhart said the central bank is "close" to lifting interest rates.

"I think the point of 'liftoff' is close," Lockhart said in prepared remarks for an address to the Atlanta Press Club. "The economy has made great gains and is approaching an acceptable normal ... conditions are no longer extraordinary."

"Compared to earlier in the year, we know a lot more and can shelve some concerns," Lockhart added. "We are getting closer and closer to what feels like a healed state."

New York Fed President William Dudley is due to speak on Wednesday.

Treasurys


In the past week, Lockhart had sent ripples through the markets when he said that in his view he saw no reason to hold off on a September rate hike.

Dudley, part of the core of the Fed closest to Chair Janet Yellen, speaks Wednesday in Rochester, New York, on work force development, but he is also taking questions. Also topping the upcoming data calendar is Thursday's July retail sales.

The yield on the benchmark 10-year Treasury notes climbed back 5.9 basis points to 2.2341 percent on Monday after closing at 2.175 percent, after yields dipped following Friday's jobs data.

Meanwhile, the yield on the 30-year bond traded 7.1 basis points higher to 2.8991 percent after closing at 2.828 percent, but still down from last week's gains.

On Friday, markets shifted more heavily to price in a September rate hike by the Fed after Friday's July jobs report showed solid growth of 215,000 payrolls and a steady unemployment rate of 5.3 percent.

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Crude oil futures bounced back on Monday after touching fresh multi-month lows after disappointing data from China over the weekend showed exports tumbled in the world's second-largest economy.

Brent was up $1.71 at $50.32 a barrel, after touching a more-than-six-month low of $48.26 earlier in the session. U.S. crude closed up $1.09 at $44.96 after falling to $43.35 earlier, a nearly-five-month low.

In Europe, optimism for a fresh Greek bailout deal grows as Greece and its creditors are close to reaching an outline deal this week on the debt-laden country's 86 billion euro bailout deal.

—CNBC's Patti Domm and Reuters contributed to this report.