NEW YORK (CNNMoney.com) -- U.S. Treasury debt prices fell on Monday as investors took their cue from a rebounding stock market and sold debt positions since there was no economic data to sway trading.
Benchmark Treasury yields reached two-month lows last week as bond prices rose on tumbling stocks and investor concerns over reduced access to credit.
Bond prices mainly have been moving in the opposite direction of stocks - when stocks slide, fearful investors turn to the relative safety of bonds, and when stocks show signs of life, bonds retreat.
"Treasurys are just watching stocks - we have no other drivers for today," said Beth Malloy, bond market analyst at Briefing.com in Chicago, adding "we are also weighed by last week's rally."
U.S. stocks climbed in choppy trade, with some optimism about the earnings outlook offsetting concerns about a deteriorating credit market.
Benchmark 10-year notes were 11/32 lower in price, or $3.44 every $1,000 spent, to yield 4.81 percent, from 4.77 percent late Friday.
Investors have been fretting lately that deteriorating credit markets will hurt chances for more corporate buyouts and dry up funding, and that losses in the subprime mortgage market may spill over into the broader economy.
"We are getting dragged higher in yield with stocks bouncing back, we are tracking stocks pretty closely," said Carl Lantz, U.S. interest rate strategist at Credit Suisse in New York, who also added "bonds were pretty extended [after last week's rally]."
No fresh economic data are due until Tuesday and no Federal Reserve officials are scheduled to speak until after the Fed's next policy meeting on August 7.
Two-year Treasury notes were trading 4/32 lower in price, or $1.25 on every $1,000 spent, for a yield of 4.59 percent from 4.51 percent late Friday, while five-year notes were down 9/32, or $2.81 on every $1,000 spent, for a yield of 4.64 percent from 4.58 percent.
Thirty-year bonds were 15/32 lower for a yield of 4.97 percent from 4.94 percent.
In currency trading the euro bought $1.3692 up from $1.3629 Friday. The dollar bought ¥118.95 from ¥118.51 in the previous session. 
