US Treasury yields rise after Bullard remarks

U.S. Treasury prices fell on Monday, pushing yields higher, as the market wound back some of the gains made in the wake of last week's Federal Reserve decision to leave interest rates steady.

The yield on two-year Treasurys was up over 2 basis points at 0.7062 percent and well off lows hit on Friday at about 0.66 percent. When a bond yield rises, its price falls.

The benchmark 10-year bond yield (U.S.: US10Y) was at 2.1834 percent, climbing over 3 basis points from Friday's close.

Analysts said the bullish tone in bond markets at the end of last week was perhaps overdone, with bond yields heading back up as investors reassessed the market outlook in the wake of the Fed meeting.

"You would think then that markets would take the postponement of the rate hike in their stride," analysts at Societe Generale said in a note. "Even if the FOMC (Federal Market Open Committee) certainly sounded dovish (and that could be seen as surprising), the bullish and risk-off moves into the weekend were beyond our expectations."

Comments from Fed speakers this week could provide some direction to the Treasury market.

St. Louis Fed President James Bullard told CNBC's " Squawk Box " that he would have dissented on the central bank's decision to keep rates lower.

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On the data front, August existing home sales came in at 5.31 million, below the expected 5.51 million.

Elsewhere, U.S. stocks traded higher, with the Dow Jones industrial average rising over 100 points in morning trade.

And in Europe, Greek bond yields fell after an unexpectedly clear win for the left-wing Syriza party following an election on Sunday.

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