U.S. government debt yields ticked upward on the first day of the trading week as politics took center stage.
The yield on the benchmark 10-year Treasury note was higher at around 2.966 percent at 1:18 p.m. ET, while the yield on the 30-year Treasury bond was higher at 3.108 percent. Bond yields move inversely to prices.
President Donald Trump is due to meet on Tuesday with North Korean leader Kim Jong Un in Singapore to discuss future relations and denuclearization.
While no major concrete results are expected to come out of this initial meeting, investors hope the meeting will reinforce relations between the isolated state of North Korea and the West.
Elsewhere, Trump continues to keep markets on edge. Over the weekend, the annual G-7 summit took place in Quebec, Canada, where Trump met with a number of leading nations to talk trade; however the event did not end on an optimistic note.
In recent weeks, concerns over a potential trade war have arisen after the U.S. administration imposed tariffs on Canada, Mexico and Europe.
The conclusion of the two-day summit, where Trump met with leaders from Europe and Canada, resulted in the U.S. incumbent refusing to endorse the joint G-7 statement that called for a reduction of tariffs — sparking tensions between him and fellow G-7 leaders.
While no central banking speeches are scheduled to occur Monday, investors will be turning their attention to a meeting by the U.S. Federal Reserve, due to take place Tuesday and Wednesday this week.
The U.S. central bank is expected to announce a quarter-point increase in interest rates as it seeks to normalize monetary policy with the economy showing signs of health.
Earlier this month, data revealed that the U.S. economy added 223,000 jobs in May, well ahead of economist expectations of 188,000 and adding to a growing pool of evidence that the economy is nearing full employment.
Last week, initial claims for state unemployment benefits also decreased 1,000 to a seasonally adjusted 222,000 — economists had estimated an increase.
The Treasury Department auctioned $22 billion in 10-year notes at a high yield of 2.962 percent. The bid-to-cover ratio, an indicator of demand, was 2.59. Indirect bidders, which include major central banks, were awarded 56 percent. Direct bidders, which includes domestic money managers, bought 16.3 percent.