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US Treasurys start week on back foot

larryhw | iStock/360 | Getty Images. There are many bond products, such as high-yield and emerging markets bonds, that offer higher returns than traditional core fixed-income products.

U.S. Treasury prices started the week on the back foot, with signs that the crisis in Greece may be abating dimming the appeal of safe-haven bonds.

Greek banks reopened on Monday after being closed for three weeks to prevent their collapse under hefty cash withdrawals - a sign that the stability may be returning after a cash-for-reforms deal was struck between Athens and its creditors.

Read More IMF should offer Greece debt relief: Ex-director

Against this backdrop, Treasury yields, which move in the opposite direction to prices, edged higher across the curve.

Two-year yields were 2.4 basis points higher at 0.6939 percent, while the benchmark 10-year yield (U.S.: US10Y) was up 3.1 basis points at 2.3796 percent. Thirty-year treasury yields also rose about 3 basis point to 3.113 percent.

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"Risk sentiment is set to stay firm in the near term. That will be a threat to bonds, if only oil prices find their feet," analysts at Societe Generale said in a note, referring to the tumble seen in oil prices last week after Iran agreed to a nuclear deal that would allow it to return to an already oversupplied world market.

Analysts say that expectations for a rise in U.S. interest rates sooner rather than later have also put renewed pressure on the bond market, flattening the yield curve between five and 30-year bonds on Friday after solid inflation and housing numbers.

U.S. Federal Reserve Chair Janet Yellen told Congress last week that interest rates were likely to rise this year depending on economic conditions - renewing talk of a near-term rate hike, possibly at the Fed's September meeting.

Read More Earnings should grab attention, but watch commodities

There's no major U.S. economic data on the calendar this session, but the week ahead will see the release of June existing home sales data on Wednesday and new home sales data on Friday.

Elsewhere, U.S. stock markets awaited the release of a raft of second-quarter earnings reports with stock futures pointing to a slightly positive open on Wall Street.

Gold was also in the spotlight after prices tumbled to five-year lows on speculative selling.



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