U.S. sovereign bonds declined on Monday, following European and Asian bonds lower as global markets prepare for a hike in interest rates by the U.S. Federal Reserve next month.
The Treasury Department auctioned $24 billion in three-year notes at a high yield of 1.271 percent, which was the highest since April 2011. The bid-to-cover ratio, an indicator of demand, was 2.82, the weakest since Oct. 2009.
Indirect bidders, which include major central banks, were awarded 40.8 percent. Direct bidders, which includes domestic money managers, bought 15.1 percent.
Three-year note yields spiked to 1.24 percent after the announcement, near the session's high. The maturity was last flat with the yield at 1.22 percent, a fresh session low.
Yields on benchmark 10-year Treasury notes rose to 2.34 percent on Monday, up from 2.333 percent. Bond prices and yields move inversely.
Thirty-year Treasury bonds yielded 3.10 percent, up from 3.090 percent.
Malaysian, Indonesian and Singaporean bonds underperformed early in the day, while bonds across Europe, including "safe-haven" German bunds continued to fall later in the day.