U.S. sovereign bonds gave up earlier gains on Monday, as a wobbly start to the week in equities boosted demand for so-called safe haven assets.
Yields on benchmark 10-year Treasury notes were up 3 basis points at 2.213 percent, after falling as low as 2.13 percent earlier in the session. Thirty-year Treasury bond yields rose 4 basis points to 2.954 percent, up from a session low of 2.86 percent.
Short-term debt yields were also higher, with the two-year note yield at 0.73 percent.
Traders will factor in a report in The Financial Times over the weekend that Beijing would abandon its large-scale share purchases. This sparked declines in China's A-listed shares, although the Shanghai Composite pared losses to close 0.8 percent down.
On the data front, the Chicago purchasing managers' index (PMI) for August came in below expectations at 54.4. Economists were expecting the number to come in at 54.7.
Markets will also digest comments from Federal Vice Chairman Stanley Fischer regarding the likelihood of a U.S. interest rate hike in September. Fischer told CNBC on Friday from the Jackson Hole symposium that it was too early to determine whether last week's market turmoil would impact the likelihood of a rate hike next month.
On Monday, veteran fund manager, Mark Mobius, said that the Fed should wait beyond September.
"The Fed should be concerned with inflation and what the interest rate should be in relation to inflation. And we don't see inflation coming up in any significant degree," Mobius, chairman of the emerging markets group at Franklin Templeton Investments, told CNBC.