U.S. bonds fell on Monday, with some investors exiting the safe-haven asset class as Wall Street swung higher and worries dwindled about troubled developing economies such as Ukraine.
After muted price changes in overseas and early New York trading, benchmark 10-year U.S. Treasury notes were off 2/32 in price. That pushed the yield to 2.741 percent after going as high as 2.763 percent.
The thirty-year Treasury bond was down 2/32 of a point in price, taking the yield to 3.699 percent after a session top of 3.72 percent set about midday.
"With signs of progress in Argentina and Ukraine ... that causes people to leave Treasurys. There's less anxiety over emerging markets," said Patrick McCluskey, senior fixed income strategist at Wells Fargo Advisors.
Treasurys appear overvalued and are increasingly seen vulnerable to Federal Reserve policy changes and higher interest rates, McCluskey said. Wells Fargo forecasts that year's end yields will be 3.50 percent on 10-year Treasury notes and 4.50 percent on 30-year bonds, he said.
McCluskey also said Wall Street stocks, which rallied sharply on Monday and took some headline indices to fresh highs, were likely to see many ups and downs during 2014.
Overall, Treasury investors have had scant guidance for trading from U.S. economic data but may get some on Thursday, when Federal Reserve chief Janet Yellen appears before Congress, according to DRW Trading strategist Lou Brien in Chicago.