Treasuries were mixed on Monday after a report showed that the U.S. services sector expanded unexpectedly.

The 10-year Treasury note fell 4/32 in price to yield 3.873 percent at 5:22 p.m. in New York. Two year notes were higher, rising 2/32 in price to yield 2.425.

The Institute for Supply Management's manufacturing index rose to 52 percent from 49.6 percent in march. Economists were expecting a reading of 49.4. Readings over 50 percent show growth in manufacturing.