Treasury yields slightly lower amid reports of US-China trade progress

• Investor focus was mostly attuned to global trade developments, after a report overnight said the U.S. and China were closing in on a deal.
• Elsewhere, investors will likely monitor construction spending figures, which are due to be released at 10 a.m. ET.
• Meanwhile, the Treasury is set to auction $48 billion in three-month Treasury bills and $39 billion in six-month bills.

U.S. government debt prices were marginally higher Monday amid reports of improving progress in trade negotiations with China.

The yield on the benchmark 10-year Treasury note sank slightly to around 2.748 percent, while the yield on the 30-year Treasury bond slipped to 3.114 percent. Bond yields move inversely to prices.

Chinese President Xi Jinping welcomes U.S. President Donald Trump outside the east gate of the Great Hall of the People in Beijing, China on Nov. 9, 2017.

Rao Aimin | Xinhua News Agency | Getty Images

Investor focus was mostly attuned to global trade developments Monday, after a Wall Street Journal report overnight said that the U.S. and China were closing in on a deal.

The paper reported Sunday that China had offered to lower tariffs on U.S. farm, chemical and auto products as part of a trade agreement, while the U.S. was considering removing most, if not all, duties imposed on Chinese products last year.

Last week, the White House economic advisor, Larry Kudlow, told CNBC that Washington and Beijing were making "fantastic" progress in their negotiations.

Elsewhere, investors will likely monitor construction spending figures, which are due to be released at 10 a.m. ET.

Meanwhile, the Treasury is set to auction $48 billion in three-month Treasury bills and $39 billion in six-month bills on Monday.