Bonds

US Treasury yields slip as fears of market volatility linger

U.S. government debt yields slipped on Monday as lingering fears about a volatile stock market kept Treasury rate in check.

At around 2:53 P.m. ET, the yield on the benchmark 10-year Treasury note slipped to 3.194 percent, while the yield on the 30-year Treasury bond fell to 3.384 percent. Bond yields move inversely to prices.

Yields have hit multi-year highs in the last few weeks as a strong U.S. economy has spurred the Federal Reserve in the direction of higher interest rates. The U.S. central bank last week released minutes that showed clear hawkish sentiment, with members confident in the Fed's interest rate path.

"Don't get too carried away with the buying; there isn't a major spree at hand, but we could see an organized move in increasing size if equities continue to take it on the chin," Kevin Giddis, head of fixed income capital markets at Raymond James, wrote in an emailed statement.

"The 'easy' trade is behind us and with volatility on the rise, we will have days where the bond and stock markets aren't sure what they want to do, or when to do it," he added.

— CNBC's Ryan Browne contributed reporting.