At 9:30 a.m., the 10-year yield was at 8.32 percent, down 3 basis points from Friday.

US jobs growth ground to a near halt in June as employers hired the fewest workers in nine months, frustrating hopes that data would start to show an improving economy into the second half of the year.

US Treasury prices rallied on Friday after the dismal jobs report renewed fears the economy is slowing, and led to some speculation that lawmakers may now be less likely to push through harsh spending cuts, or risk harming the economy further.

Oil ended a strong week on a downbeat note on Friday as the jobs report cast a pall on the economic outlook.

The benchmark 10-year US note was trading at 3.03 percent in Asian trade, 1 basis point higher from late New York trade on Friday when it had fallen 12 bps.

Traders expect the Reserve Bank of India to raise key rates by a quarter percentage point at a scheduled review on July 26 and the data this week will cement that view.

Copyright Reuters, 2011