U.S. Treasury debt prices ended lower on Monday on light summer volume, with bond yields staying in a tight range ahead of Tuesday's release of the government's report on retail sales.
Traders have been scouring for signs of a strengthening recovery, with most expecting the Federal Reserve will start reducing its $85 billion monthly bond purchases in September if data shows the economy is gaining traction.
"With people expecting the Fed to buy less bonds, you are getting a weakening in both bonds and stocks," said Justin Hoogendoorn, fixed income strategist at BMO Capital Markets in Chicago.
In the near term, Tuesday's retail sales report will be watched for signs over the strength of consumer spending, which accounts for two-thirds of the U.S. economy.
Economists polled by Reuters forecast retail sales likely grew 0.3 percent in July after a 0.4 percent increase in June.
The most important data in coming weeks, however, and potentially the only one that might alter the Fed's course, will be the release of the August jobs data on Sept. 6, before the Fed's Sept. 17-18 meeting.
(Read more: GDP growth questioned as data misses)