U.S. government debt prices traded mostly higher on Monday, as investors digested weaker-than-expected economic data and the first of three major note sales.
The Treasury Department auctioned $26 billion in two-year notes at a high yield of 1.348 percent, the highest since October 2008.
The bid-to-cover ratio, an indicator of demand, was 3.03, the highest since November 2015.
Indirect bidders, which include major central banks, were awarded 56.6 percent, above a recent average of 45 percent. Direct bidders, which includes domestic money managers, bought 18.3 percent, the largest since February.
"At least measured by this auction, the buyers are really doubting the path of many more rate hikes from the Fed," said Peter Boockvar, chief market analyst at The Lindsey Group. "We all debate this everyday about the mixed messages from the different markets but the Treasury market is speaking loudly about its view on growth and inflation."
The two-year note yield slipped to 1.336 percent following the sale; it traded around 1.34 percent beforehand.