Treasury yields fell slightly on Monday as investors searched for so-called safe havens amid concerns over the global economy, the spread of Covid-19 and geopolitical tensions.
The move in yields came as gold prices soared to a new record high.
Recent growing Covid-19 infections in certain parts of the world have raised concerns over the prospects for the global economy. India, Hong Kong, as well as certain regions of Europe, have seen spikes in recent days.
"The only meaningful challenge to the low-rate thesis most likely won't materialize until after Labor Day as vaccine results help recast expectations for the duration of the pandemic," Ian Lyngen, BMO's head of U.S. rates, said in a note on Monday.
Data on Monday showed orders for long-lasting factory goods rose 7.3% in June for the second consecutive monthly gain. Economists polled by Dow Jones expected a 5.4% increase. However, core durable goods orders, which exclude the often volatile transportation category, were up 3.3% in June, versus expectations of 3.6% per Dow Jones.
The U.S. Treasury is due to auction $105 billion in 13-week and 26-week bills; $48 billion in two-year notes; and $49 billion in five-year notes.