Aside from the upcoming U.S. election, the U.S. central bank continues to be of importance to investors, as markets debate when the Fed will next choose to raise interest rates.
"On the better than expected print as people believe this will spill over into the ISM report in a few weeks, the 10 yr yield is back at 1.75% after trading at 1.73% prior to the release. The 2 yr yield is up by 1 bp to .83%," Peter Boockvar, chief market analyst at The Lindsey Group, said in a note.
The economic data calendar was light on Monday, with only the IHS Markit manufacturing index's flash read for October released. The number rose to 53.2 from a three-month low of 51.5, which was hit in September.
"The latest reading signalled a solid upturn in overall business conditions, and the rate of improvement was the fastest since October 2015. Stronger output and new business growth were the key factors boosting the headline PMI, which helped offset a drag from softer job hiring in October," IHS Markit said in its report.
Chicago Fed President Charles Evans suggested on Monday that the central bank may need to keep its benchmark federal funds rate lower for longer to convince investors that it is serious about reaching its 2-percent inflation target. Evans will rotate into a voting spot on the Fed's policy panel in 2017.