Treasuries' upward trend stalls

NEW YORK (CNNMoney.com) -- Treasury prices lost some steam Monday, snapping what would have been a strong three-day upward trend, as most bonds ended slightly higher or stayed flat.

"We haven't had a three-day streak all month," said Bill Larkin, portfolio manager at Cabot Money Management. "The market is getting ahead of itself, and North Korea was a tailwind today."

Tensions on the Korean peninsula were escalated after Seoul's planned live-fire drill. North Korea said the drill could ignite a war, but the country did not act immediately on Monday.

Uncertainty and geopolitical tensions tend to lead investors to plunk their cash in Treasuries, because they're backed by the U.S. government and considered low-risk assets when compared to stocks and other higher-yield investments.

Prices had been higher throughout most of the day, but they drifted lower by the afternoon.

Though bond yields have been creeping higher since mid-October, they're still too low for the average investor, Larkin said.

"The bond market is not meeting anyone's financial objectives, unless you're super rich," he said. "Those who are already in, are staying defensive. And why should new investors jump in? There's not much of an incentive."

With this week and next week shortened for holidays, some traders are already closing up their positions. Little news is on tap for the rest of the year, though investors are looking to reports on new and existing home sales this week. Trading is expected to be light until the new year.

What yields are doing: The yield on the benchmark 10-year note held at 3.33%. The 30-year bond yield rose to to 4.44%, from 4.41% Friday.

Meanwhile, the yield on the 2-year ticked up to 0.61%, and the 5-year note held at 1.95%.

Treasury prices and yields move in opposite directions.