U.S. Treasurys yields fell on Monday with benchmark yields retreating from seven-month highs as concerns about Greece and its ability to avert default renewed safehaven demand for low-risk government debt.
Greece and its creditors have not reached a deal so the cash-strapped nation could obtain more funds. Greece delayed a 300 million euro payment to the International Monetary Fund last week and rattled investors on Friday when its Prime Minister Alexis Tsipras' outright rejected a proposal from lenders.
Athens struck a more conciliatory tone on Monday, giving some hopes that an agreement may be obtained by the end of June.
"Greece is clearly a big issue. People are watching and waiting," said John Herrmann, an interest rates strategist at Mitsubishi UFJ Securities USA Inc. in New York.
Greece-related safety bids provided a respite for the U.S. bond market that came off its worst week in three months.