Lingering questions about sluggish inflation, which can erode a bond's fixed payments, has helped to mostly put some downward pressure on yields, which move inversely to prices lower, despite the hawkish monetary-policy stance maintained by the Federal Open Market Committee and Fed Chairwoman Janet Yellen, who described signs of weak inflation and economic growth as "one-off". The euro was up 0.1 percent against the yen, at 124.25 yen.
US crude fell 1.41 percent to $44.11 per barrel and Brent was last at $46.81, down 1.18 percent on the day.
Brexit Secretary David Davis starts negotiations in Brussels on Monday, which will be followed by a Brussels summit on Thursday and Friday where British Prime Minister Theresa May will encounter - but not negotiate with - fellow European Union leaders.
The 10-year Treasury note TMUBMUSD10Y, +1.13% was up 1.4 basis point at 2.171%, compared with 2.157% late Friday in NY.
Retailers in Europe, closed up 0.8 percent, and in the US gained 0.8 percent, recouping some losses that were triggered on Friday by news of Amazon's $13.7 billion deal to buy upscale grocer Whole Foods Market (NasdaqGS: WFM - news).
"This is actually a pretty good place to be" with unemployment at 4.3 percent and inflation at about 1.5 percent, Dudley told the North Country Chamber of Commerce in Plattsburg, New York.
Rod Rosenstein: There's No Reason To Fire Special Counsel Mueller
Democratic Senator Dianne Feinstein of California told Rosenstein , "It would be catastrophic", if Trump fired Mueller . It's unclear whether the president could override those rules and order Rosenstein to fire Mueller .
The dollar index against a group of major currencies was down 0.05 per cent at 97.108. US gold futures GCcv1 settled down 0.8 percent at $1,246.70.New York Federal Reserve President William Dudley said USA inflation is a little low but should rise alongside wages as the labour market improves, allowing the Fed to continue gradually tightening USA monetary policy.The potential for higher rates reinforced the uptrend in the dollar.DXY, which, when it rises, makes dollar-denominated commodities more expensive for holders of other currencies, potentially weakening demand.
The Dow Jones Industrial Average rose 108.41 points, or 0.51 percent, to 21,492.69, the S&P 500 gained 16.04 points, or 0.66 percent, to 2,449.19 and the Nasdaq Composite added 76.13 points, or 1.24 percent, to 6,227.89. Last week's hike was the central bank's third in six months.
The dollar was up 0.1 per cent at 110.955 yen.
"The potential hikes, including their speed and magnitude, have limited gold's upside risk in our view, and expectations being scaled back bode well for prices later in the year."Elsewhere, palladium XPD= was down 0.3 percent at $858.49 an ounce".
Gold touched a 3-1/2-week low earlier in the session, and was trading down slightly at $1,252.20 an ounce at 0158 GMT.