U.S. government debt yieldsrose on Monday following Friday's strong jobs report.
The U.S. economy added 223,000 jobs in May, data revealed Friday, leading government debt prices to fall, as traders became more confident on the economy's prospects and the likelihood that the Federal Reserve will be forced to increase rates at a fast pace.
Economists had been expecting payroll growth of 188,000 and the jobless rate to hold steady at 3.9 percent.
The closely watched average hourly earnings metric rose 0.3 percent, slightly warmer than expected, yielding an annualized rate of 2.7 percent, up one-tenth of a point from April.
Investors have been scrutinizing headline jobs numbers to try to determine whether a tight labor market is spurring wage growth. The Federal Reserve has also been keeping a close eye on signs of inflation. Central bankers have indicated that two more interest rate hikes are likely this year in addition to the one they approved in March.
The yield on the two-year Treasury note hit a high of 2.5 percent, its highest level since May 25.