US Treasury yields traded lower on Monday as efforts by Republican lawmakers in Washington to scale back a relief package reduced expectations for additional issuance.

The benchmark 10-year yield was down almost a basis point at 1.086% in morning trading. The two-year yield , typically an indication of interest rate expectations, was at 0.1113% and traded as low as 0.107%, just above its all-time low of 0.105% reached last May.

Ten moderate Republican US senators on Sunday urged Democratic President Joe Biden to significantly downsize his sweeping $1.9 trillion COVID-19 relief package to win bipartisan support, as Democrats in Congress prepared to push ahead with his plan this week.

"There's less expectation of a grander stimulus package, which is limiting expectations for Treasury supply" and lowering yields, said Jim Barnes, director of fixed income for Bryn Mawr Trust. He and others also cited the dovish stance on rates the US Federal Reserve reiterated last week.

Wall Street's main indexes opened higher on Monday following a steep sell-off last week, as a shift in the retail trading frenzy to silver drove up mining stocks and investors awaited manufacturing data later in the day.