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US Treasury yields climb ahead of data packed week

Bond traders at CME Group
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U.S. sovereign bonds yields traded higher on Monday, as traders focused on the slew of data out in the week ahead, culminating in the closely watched labor market report on Friday.

Traders will look to non-farm payrolls on Friday for hints on the direction and timing of monetary policy.

On Monday, investors took in the latest reading of the ISM manufacturing index, which came in 50.1, slightly above expectations, while construction spending for September rose 0.6 percent.

Read MoreMarkets to tune out Fed speakers in favor of jobs report

"Bottom line, as seen with the soft regional manufacturing data points in the context of a stronger dollar and very modest overseas economic activity, it's no surprise the challenges US companies are experiencing as seen in today's flat line number," Peter Boockvar, chief market analyst at The Lindsey Group, said in a note.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
---
US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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Benchmark 10-year Treasury yields rallied to trade 2.1828 percent on Monday, having closed at 2.151 percent on Friday.

Meanwhile, yields on the 30-year Treasury edged closer to the 3 percent handle, trading up at 2.9535 percent after finishing at 2.936 percent in the previous session.

As well as data releases including factory orders data and vehicle sales numbers this week, markets will be keeping an eye on Fed commentary, as numerous Federal Open Market Committee members are due to speak, including Fed Chair Janet Yellen on Wednesday.

In stock markets, sentiment was given a lift after equities closed out their best month in four years, helped by a recovery in oil prices and hopes of easy monetary policy.

The S&P 500 ended October at 2,079 points, gaining 8.3 percent for the month but just 0.2 percent for the past week. That was its best month since a 10.7 percent gain in October, 2011.