NEW YORK (CNNMoney.com) -- The yield on the benchmark 10-year Treasury continued last week's declines, shrugging off a report that revealed existing home sales came in a bit better than Wall Street had expected.

The dollar edged higher against the euro and moved slightly lower against the yen.

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The 10-year Treasury note gained 12/32, or $3.70 on a $1,000 note, to yield 4.54 percent, down from 4.60 percent late Friday.

The 30-year bond rose 27/32, or $8.40 on a $1,000 bond, to yield 4.68 percent, down from 4.74 percent the previous session. Bond prices and yields move in opposite directions.

The five-year note rose 3/32 to yield 4.50 percent, while the two-year note was up one tick, yielding 4.64 percent.

"We are a little perplexed by this move. The housing numbers wouldn't indicate this kind of rally. From what we have heard it's sector rotation. There is a lot of movement out of mortgage-backed [securities] into Treasuries," Don Kowalchik, a debt strategist at AG Edwards & Sons in St Louis, told Reuters.

The National Association of Realtors reported that existing home sales fell 0.5 percent to an annual pace of 6.30 million in August, compared with a 4.1 percent drop the previous month.

Economists surveyed by Briefing.com forecast that sales of existing homes fell to an annual rate of 6.25 million in August from 6.33 million.

The sales figure, while lower, breaks from last week's sharp drop in housing starts since it exceeded economists' expectations.

Investors have embraced the safe-haven investment on the latest housing figures and other economic reports that have suggested the U.S. economy is experiencing a slowdown.

The recent data has also fueled speculation on Wall Street that the Federal Reserve could begin considering lowering interest rates.

As expected, the Fed's policy-makers voted to keep their overnight federal funds rate target at 5.25 percent last Wednesday, the level it reached in June after 17 straight increases stretching over more than two years.

In currency trading, the euro bought $1.2755, down from $1.2788 late Friday. The dollar bought ¥116.50, down slightly from ¥116.52 the previous session.

Reuters contributed to this report

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