U.S. bond prices fell on Monday after a deal was reached to fund the government avoiding a shutdown.
Congressional negotiators worked through the weekend to hash out an agreement on around $1 trillion in federal spending.
Treasury Secretary Steven Mnuchin also said the government is looking into creating ultra long-term bonds with over 30-year maturities.
The yield on the benchmark 10-year Treasury note was higher at 2.32 percent, while the yield on the 30-year Treasury bond was higher at 3.003 percent. The yield 7-year note was around 2.128 percent.
Yields move inversely to prices.
Investors also digested several key economic data due Monday.
The ISM manufacturing index slipped to 54.8 in April from 57.2 and came in below consensus. Also, construction spending in March from a record high.
The Commerce Department said consumer spending remained flat in March, while personal income rose less than expected.
In oil markets, Brent crude traded at around $51.48 a barrel on Monday, down 1.10 percent, while U.S. crude was around $48.76 a barrel, down 1.16 percent.