Treasury yields were little changed on Monday, cooling after a strong surge in the previous session, as investors digested economic data and looked ahead to the new trading week.
The yield on the benchmark 10-year Treasury note retreated 1 basis point to 1.919%. The yield on the 30-year Treasury bond ticked down a basis point to 2.222%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Yields have jumped in the opening weeks of 2022 as the Federal Reserve has signaled that it will hike rates multiple times this year. The 10-year yield was trading near 1.5% at the end of December.
"Once you get the story and you get some legs behind the bond market, a lot of times it sort of overdoes itself as people over-position one way or the other," said John Luke Tyner, a portfolio manager at Aptus Capital Advisors. "So I wouldn't be surprised if we push up to [2.25% on the 10-year] by say mid-summer, and really I think it is going to come down to how does the market view, once the Fed finally hikes, what that prompts for future growth."
Yields have risen as investors weigh high inflation and strong economic growth.
The Labor Department said Friday that the economy added 467,000 jobs in January. Economists surveyed by Dow Jones expected an addition of just 150,000 jobs, with some Wall Street pros projecting net jobs losses for the month due to the omicron variant surge. After the news on Friday, the 10-year yield hit its highest level since December 2019.
Claims for the week ended Jan. 29 totaled 238,000, a touch lower than the 245,000 Dow Jones estimate, the Labor Department reported Thursday.
Another busy week of earnings is on deck with 76 S&P 500 companies set to post results. Three Dow components will provide quarterly updates, including Disney and Coca-Cola. Amgen, Take-Two Interactive and Onsemi are among the names that will report earnings on Monday.
Later in the week, investors will be watching key inflation data: the consumer price index on Thursday, followed by the University of Michigan's consumer sentiment survey on Friday.
In Europe on Monday, sovereign yields of peripheral countries like Italy rose sharply after Dutch central banker Klaas Knot raised the possibility of a rate hike for the European Central Bank later this year.
Auctions were held for $60 billion of 13-week bills and $51 billion of 26-week bills.
—CNBC's Pippa Stevens, Jesse Pound and Tanaya Macheel contributed to this article.