The yield on the benchmark 10-year Treasury note slipped to 2.65 percent, while the yield on the 30-year Treasury bond fell to 2.99 percent. Bond yields move inversely to prices.
Fixed income traders turned their attention to the latest session of trade negotiations between Washington and Beijing. The White House said Monday that a new session of trade discussions would take place Tuesday, with higher level talks due later this week.
Tensions between the two countries have heightened as they attempt to strike a deal to prevent any further escalation in tariffs. China on Monday accused the U.S. of blocking its industrial development by claiming Chinese mobile gear could pose a cybersecurity threat to countries rolling out next-generation 5G networks.
New York Federal Reserve President John Williams said in an interview with Reuters that he was content with the current level of U.S. interest rates and doesn't see a need to raise them again barring a change in inflation or economic growth. As the Fed's New York representative, Williams is perennial voting member of the Federal Open Market Committee.
"I don't think that it would take a big change, but it would be a different outlook either for growth or inflation" to return to hiking rates, Williams told Reuters.
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