The 10-year notes yield stood at 1.531 percent , down from 1.545 percent at the end of US trade last week. US stock futures slipped about 0.3 percent on Monday after sharp gains on Friday.

The yield rose as high as 1.591 percent on Friday, its highest in three weeks, on hopes the European Central Bank will launch new stimulus measures, though the move was also driven by position unwinding ahead of a weekend.

Although hopes of more stimulus from the European Central Bank were supporting risk assets and took the shine off Treasuries since late last week, market players see limited downside for Treasuries given the problems in the global economy.

The 10-year T-notes futures rose 6/32 in price to 134 - 10.5/32, having rebounded on Friday at key technical support of the 55-day moving average at around 133 - 31/32.

A few market players expect the US Federal Reserve to adopt another quantitative easing at its two-day policy meeting starting on, though many think additional measures are more likely later this year.

The ECB is far more likely to take actions at its meeting on Thursday after chief Mario Draghi said last week he would do whatever it takes to save the euro.

But because Draghi has already boosted expectations to such a high level, it could be difficult to impress investors, some market players said.

"Of course, we all have to see what will come of policy meetings. But if I have to bet, the 10-year Treasury yield is likely to peak around 1.6 percent," said Arihiro Nagata, manager of foreign bonds at Sumitomo Mitsui Banking Corp.

"Now investors are holding off buying ahead of the ECB but after that they will likely come to buy unless the ECB comes with a real surprise. In addition, corporate bond issue will dwindle in August so the market's demand-supply balance will be favourable," he added.