All eyes will be on the U.S. Federal Reserve's policy announcement on Wednesday at the end of its two-day September meeting. Market consensus is for the Fed to hold its base rate at 0.25-0.50 percent.
"With the key event of the week on Wednesday, and not a lot of market-driving news before then, it could be a slow start but I'm still bond-watching and the market's still long 10-year notes," Kit Juckes, strategist at Societe Generale, said in a note on Monday.
"At the moment, the rates market prices a 55 percent chance of a hike by December and the Federal Open Market Committee may need that probability to increase to provide room for them to act. A rate hike this week seems very improbable … the need to lay the ground for action after the U.S. election seems clear enough. Any significant (more than 10-basis point) rise in 10-year yields is likely to be felt in a further correction for risk assets and currencies, globally," he later added.
Like the Fed, the Bank of Japan will start its two-day policy meeting on Tuesday, with an announcement the day after.
Japanese bonds fell on Monday.