Monday's moves in the bond market come after the 10-year Treasury note yield fell below 2.75 percent on Thursday — its lowest level since Feb. 6 — as global investors remained wary amid a wider sell-off in equity markets.
An ongoing trade spat between the U.S. and China continued to develop, with China announcing overnight that it would implementtariffs on 128 types of U.S. imports starting Monday.
That matched the list of potential tariff products proposed by Beijing in March and comes as a direct response to President Donald Trump signing off on tariffs on imported steel and aluminum last month. China said in March that those goods had an import value of $3 billion in 2017.
The Institute of Supply Management's index of manufacturing activity hit 59.3 in March, a larger tick downward from the prior month's 60.8 reading than expected. The latest move comes thanks to a more modest uptick in contruction spending that anticipated amid a sharp drop in public projects.
Meantime, investors will be awaiting remarks from Minneapolis Fed President Neel Kashkari who is speaking at University of Minnesota Student Town Hall in Duluth.
—CNBC's Cheang Ming contributed to this article.