Longer-dated U.S. Treasury yields fell on Monday on buying supported by the view that the recent acceleration in job gains is not enough to spur the Federal Reserve to raise short-term interest rates earlier than expected.
Yields rose slightly during midday trading but settled at lows.
On the open market, the yield on 10-year Treasury notes was last at 2.61 percent, more than 3 basis points lower than Thursday when it traded as high as 2.69 percent. The 30-year yield ended 4 basis points lower at 3.44 percent.
While Thursday's government payrolls report showed a robust 288,000 increase in hiring in June and the jobless rate fell to a six-year low at 6.1 percent, some traders were not convinced the labor market is strong enough for Fed Chair Janet Yellen and other policymakers to tighten policy sooner. The historically low worker participation rate and a slow rate of wage growth will likely restrain consumer spending, which accounts for two-thirds of the U.S. economy.