NEW YORK: US Treasury yields rose slightly on Monday despite falling oil prices amid a dearth of major economic releases this week, with investors focused on an impending Federal Reserve meeting next week.
Rising yields were seen as likely due to position taking, with no obvious economic or other catalyst.
"I think what we're seeing is more a function of the momentum that's been in place and a bit of flow specific action," said Ian Lyngen, senior government bond strategist at CRT Capital in Stamford, Connecticut.
Treasuries had earlier gained a bid as oil and stock prices declined, after a deal to freeze oil output by OPEC and non-OPEC producers fell apart on Sunday.
Saudi Arabia demanded that Iran join in despite calls on Riyadh to save the agreement and help prop up crude prices.
The next major focus for investors is next week's Fed meeting where investors will look for clues over when the US central bank is likely to raise interest rates. A rate hike is seen as unlikely this month but possible at the Fed's June meeting.
"Any insight that the Fed might have to offer in their statement on where they are collectively leaning in June would be useful," said Lyngen.
Benchmark 10-year notes were last down 5/32 in price to yield 1.77 percent, up from 1.75 percent on Friday.
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