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US bonds decline after strong China PMI numbers

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U.S. bonds fell on Monday, pushing up yields after strong manufacturing data from China, with rates remaining within view of 2014 lows as doubts about the recovery persisted.

Yields on benchmark 10-year Treasury notes—used to calculate mortgage rates and other consumer loans—rose to 2.48 percent on Monday. This was higher than last week's 11-month low of 2.44 percent, but well off the high of around 3.0 percent touched in early January.

Read MoreHow long can Treasury yields stay low?

Data on Sunday showed China's factory activity increased at its fastest pace in five months in May. In addition, two surveys showed that home prices fell slightly from the previous month, adding to fresh signs of cooling in the property market.

"While the PMI data doesn't completely dispel China growth concerns, it certainly shows the mild stimulus measures it has taken recently have been gaining traction," said Stan Shamu, market strategist at IG in a morning note.

In the U.S., the latest manufacturing ISM will be eyed on Monday, along with April construction spending data. May's manufacturing survey is expected to provide further evidence the economy is regaining upward momentum, after a sharp slowdown earlier in the year.

There are no Treasury auctions scheduled this week. The Federal Reserve will conduct daily bond-purchase operations, with the exception of Friday.

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