Treasury debt prices shed losses to trade narrowly mixed Monday as stocks extended their losses to trade at session lows.
The benchmark 10-year Treasury note was trading 3/32 lower in price for a yield of 3.87 percent from 3.86 percent late Friday, while the 2-year Treasury note was trading 1/32 higher in price for a yield of 2.43 percent from 2.46 percent late Friday.
Bonds briefly fell after a stronger-than-expected April services indexfrom The Institute for Supply Management which put the massive non-manufacturing sector back into growth mode.
The Institute for Supply Management's non-manufacturing index came in at 52.0 in April versus 49.6 in March. A reading above 50 indicates growth in the service sector.
Economists had expected a reading of 49.1 for April, according to the median of forecasts in a Reuters poll.
Federal funds rate futures priced in a 10-percent probability that the Federal Reserve will cut the target fed funds rate by 25 basis points at a policy meeting in June, down from a 14 percent chance of a cut prior to the release of the ISM non-manufacturing data.