Treasuries moved sharply lower during trading on Monday, more than offsetting the rebound seen in the previous session.
Bond prices showed a steep drop in early trading and saw further downside going into the close. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, soared 10.4 basis points to 4.542 percent.
With the substantial increase on the day, the ten-year yield surged to its highest closing level since October 2007.
The sharp pullback by treasuries came amid ongoing concerns about the outlook for interest rates following last week's Federal Reserve meeting.
The Fed left interest rates unchanged as widely expected but forecast another rate hike before the end of the year as well as keeping rates at elevated levels for longer than previously anticipated.
CME Group's Fed Watch Tool is currently indicating a 78.9 percent chance the Fed will leave interest rates unchanged at its next meeting in late October/early November and just a 21.1 percent chance of a quarter point rate hike.
Meanwhile, the Fed Watch Tool is indicating a 61.0 percent chance the Fed will leave rates unchanged at its December meeting and a 34.2 percent chance the central bank will raise rates by a quarter point.
Later in the week, the Commerce Department is due to release its report on personal income and spending in the month of August, which includes readings on inflation said to be preferred by the Fed.
Reports on consumer confidence, new home sales and durable goods orders may also attract attention in the coming days.
Trading on Tuesday may be impacted by reaction to the latest U.S. economic data, including reports on new home sales and consumer confidence.
