Dallas Fed President Robert Kaplan proved especially hawkish on Monday. Kaplan said he is "cognizant of financial imbalances" present in the current economy and suggested that the unemployment rate may be starting to extend too far beyond its natural level.
New home sales increased 6.2 percent to a seasonally adjusted annual rate of 685,000 units last month, according to the U.S. Commerce Department. The number reflects the highest level since October 2007.
New homes sales have now increase every month since September.
The Treasury Department auctioned $26 billion in 2-year notes at a high yield of 1.765 percent.
The bid-to-cover ratio, an indicator of demand, was 2.73. Indirect bidders, which include major central banks, were awarded 41.9 percent. Direct bidders were awarded 17 percent.
The Treasury Department also auctioned 5-year notes at a high yield of 2.066 percent.
The bid-to-cover ratio, an indicator of demand, was 2.46. Indirect bidders, which include major central banks, were awarded 65.8 percent. Direct bidders were awarded 11.4 percent.
Elsewhere, two speeches by the U.S. Federal Reserve are set to take place Monday. Minneapolis Fed President Neel Kashkari will be delivering remarks at Winona State University in Winona, Minnesota.
And New York Fed President William Dudley is expected to be at a moderated conversation called "U.S. Economy: 10 Years After the Crisis," organized by the University of California, Berkeley, in New York. Investors will be watching each discussion closely for any comments about the state of the U.S. economy.
Elsewhere, tax reform will remain at the back of investors' minds, after U.S. President Donald Trump stated last week that his administration was going to "give the American people a huge tax cut for Christmas," according to the Associated Press.