U.S. Treasury debt prices rose on Monday, recouping some recent losses on anticipation that Federal Reserve Chair Janet Yellen could take a dovish tone on monetary policy this week, while weaker U.S. economic data also boosted safe-haven debt.
Yellen will testify before Congress on Tuesday in a semiannual address on the economy and monetary policy to the Senate Banking Committee.
Traders bought back some Treasurys, which have sold off over the past three weeks, on the risk that Yellen's testimony would proceed in the dovish vein of the minutes from the Fed's last meeting. The minutes showed policymakers were concerned about raising rates too soon.
"We did have a pretty meaningful sell-off," said Jonathan Lewis, chief investment officer at New York-based Samson Capital Advisors. "Today's move on the long end feels a little bit like position-squaring in front of a major event," he said in reference to Yellen's testimony.