U.S. Treasury debt extended early price losses on Monday following news that a majority of Senate Republicans are expected to support a tentative deal to at least temporarily avert the "fiscal cliff" of tax increases and government spending cuts.
The benchmark 10-year Treasury note closed 17/32 lower in price to yield 1.761 percent, up from 1.70 percent late Friday. The notes had been trading 10/32 lower in price just prior to the news.
The 30-year bond closed 1-9/32 lower in price to yield 2.951 percent.
The Treasury market closed early at 2 p.m. EST on Monday ahead of the New Year's Day holiday on Tuesday.
Treasurys prices rose last week as worries over the impact of the "fiscal cliff'' spurred safe-haven buying of U.S. government debt, but a few investors on Monday were betting the government could still come up with a plan to at least temporarily stave off some tax increases and spending cuts. (Read More: Hours From 'Fiscal Cliff,' Washington Still Awaits Deal)