US Treasury yields rise as oil falls

U.S. sovereign bond yields rose on Monday after an official survey showed China's factory sector contracted for the sixth month and as crude oil prices fell.

U.S. Treasurys

Thirty-year Treasury bonds yielded 2.7757 percent, up from a closing yield of 2.757 percent.

Read MoreYields move inversely to bond prices: CNBC Explains

Benchmark 10-year Treasury notes yielded 1.9624 percent, having closed at 1.930 percent, while two-year note yields traded at 0.8133 percent.

Early on Monday, China's official manufacturing purchasing managers' index (PMI) came in at 49.4 for January. This narrowly missed Reuters estimates for 49.6. A reading below 50 indicates a contraction in industrial activity.

U.S. light crude futures for March settled nearly 6 percent lower on Monday. Brent crude futures for April traded at around $34.20.

Meanwhile, U.S. stocks were slightly higher in choppy trading.

China manufacturing contracts further

Monday's U.S. data releases included monthly personal income, which rose 0.3 percent in December, slightly above forecasts. U.S. consumer spending remained flat.

Investors also digested the latest ISM manufacturing index reading, which came in below the key 50-expansion level.

In addition, the Treasury will auction $18 billion in 52-week bills on Tuesday.

Later in the week, the U.S. employment report will grab the limelight on Friday. That day will also bring the full trade report for December.

Consensus forecasts suggest that 190,000 jobs were created during January.

Data released on Friday suggested U.S. economic growth slowed to an annualized 0.7 percent in the fourth quarter of last year. This was in line with expectations but down sharply from 2.0 percent growth in the third quarter. Across 2015, the economy grew 2.4 percent, after a similar expansion in 2014.

Germany will sell five-year Bunds on Wednesday, while France will sell bonds with various maturities on Thursday, according to Daiwa Capital Markets.