10-year Treasury yield falls below 0.7% to start the week

Treasury yields dipped on Monday as traders geared up for the last trading session of the month and looked ahead to key jobs data at the end of the week.

The yield on the benchmark 10-year Treasury note, which moves inversely to price, fell 4 basis points to around 0.69%, while the yield on the 30-year Treasury bond was also lower at 1.46%. The benchmark rate jumped above 0.75% last week.

Federal Reserve Vice Chair Richard Clarida on Monday reiterated that the Federal Reserve will not raise interest rates just because the unemployment rate is falling.

Last week in a major policy shift, the central bank announced it would allow inflation and employment to run higher before it considers hiking interest rates again. 

In the speech on Monday, Clarida also said he and his fellow officials do not see negative interest rates as a viable option now and doubt the effectiveness of yield curve controls, though that could change.

“My colleagues and I believe that this new framework represents a critical and robust evolution of our monetary policy strategy that will best equip the Federal Reserve to achieve our dual-mandate objectives on a sustained basis in the world in which we conduct policy today and for the foreseeable future,” Clarida said.

Traders will also look ahead to Friday, when the latest U.S. jobs report is set for release. Economists polled by Dow Jones forecast that 1.255 million jobs were created in August.

—CNBC’s Fred Imbert contributed to this article.