That vote of confidence helped the U.S. dollar inch higher on the euro on Monday, though the yen made ground across the board.

For bond markets, supply will again loom large this week as the U.S. Treasury tests investor appetite with $73 billion in three-, 10- and 30-year paper.

The last batch of Treasury auctions drew surprisingly strong demand, crucially from foreign central banks who now hold almost $2 trillion of U.S. government debt.

However, traditionally central banks have been less keen on debt of 10-years or more and markets will be anxious in case demand at any of the tenders falls short of expectations. Yields on 10-year notes were little changed from Thursday at 3.50 percent.

(Editing by Neil Fullick)