U.S. Treasuries fell on Monday after news of higher than expected home sales and the world's largest bond insurer, MBIA said it would receive new capital to alleviate concerns over its liquidity.
New data from the National Association of Realtors showed that its index of pending home sales rose 0.6 percent, higher than a median estimate of economists polled by Bloomberg of a 1 percent fall.
Also, privately-held buyout firm Warburg Pincus brought some relief to MBIA's finances by agreeing to invest $1 billion in new capital in the insurer. Swiss bank UBS also eased concerns over its cash flow after it said it would sell a $11.5 billion stake in itself to investors in Singapore and the Middle East.
Ten-year Treasury notes were down, trading 14/32 lower in price for a yield of 4.163 from 4.11 late Friday. Two year notes were trading 3/32 lower in price for a yield of 3.15 from 3.11 percent.