U.S. Treasury debt prices fell Monday as another dip in crude oil prices and further stock market gains supported the idea that consumers might be able to spend enough to keep the economy from weakening further.
Crude fell nearly $2 to below $114 a barrel, trading near its lowest levels since May.
Stocks climbed as oil fell, building on a rally last week that gave stocks their best week in more than three months. The stock gains lessened the safe-haven allure of Treasurys.
"Stocks turned higher because lower oil prices are being viewed as a stimulus to the economy," said Andrew Brenner, senior vice president at MF Global in New York. "The idea is that lower oil prices will stimulate the U.S. economy and as it does so, stocks will do better and bonds will do worse."
The dollar hit a six-month high against major currencies Monday, a factor analysts said could help stocks extend their gains and consequently weigh on Treasurys prices.
The benchmark 10-year Treasury note's price, which moves inversely to its yield, fell 18/32, its yield rising to 4.01 percent from 3.94 percent Friday.
Thirty-year Treasury bonds fell more than one point, the yield rising to 4.62 percent from 4.54 percent late Friday.
Five-year notes fell 9/32, their yields rising to 3.27 percent from 3.21 percent Friday.
Two-year Treasury notes fell 3/32, their yields rising to 2.56 percent from 2.52 percent.