U.S. government debt prices fell on Monday a government report showed consumer spending surged to its highest level in 9 and a half years in March.
Consumer spending rose 0.9% overall and 0.7% when adjusted for inflation, driven by a jump in expenditures on motor vehicles and health care. Meanwhile, the core personal consumption expenditures was flat for the month and up 1.6% year over year, and the headline number rose 0.2% for a 1.5% increase over the year.
Market participants eagerly await a meeting of the U.S. Federal Reserve and the publication of Chinese factory data for further clues on policy direction in the world's largest economies.
It comes after the U.S. reported stronger-than-anticipated growth over the first three months of the year. Official data showed gross domestic product (GDP) stood at an annualized rate of 3.2% in the first quarter, beating analyst expectations.
The U.S. central bank's Federal Open Market Committee (FOMC) is due to announce its latest monetary policy decision on Wednesday.
Meanwhile, the U.S. Treasury is set to auction $39 billion in 13-week bills and $36 billion in 26-week bills.
Elsewhere, oil prices slipped during morning trade, extending a slump from the previous session after President Donald Trump demanded that OPEC raise output to soften the impact of U.S. sanctions against Iran.