U.S. Treasury yields rose on Monday as the market braced for an action-packed week that includes the likely announcement by the Federal Reserve that it will commence tapering its asset purchases, the federal government's quarterly refunding estimates, and the October jobs report.

The benchmark 10-year yield was last up 2.8 basis points at 1.5838%. The longest end of the curve remained inverted with the 20-year yield last at 2.0202% and the 30-year yield at 1.9832%.

'Pivotal' Fed News

"It's a pivotal week," said George Goncalves, head of U.S. macro strategy at MUFG in New York, adding that the market is focused on the Fed's two-day meeting and Wednesday's widely expected announcement that the central bank's monthly $120 billion purchases of Treasuries and mortgage-backed securities will be reduced.

He said the Fed has to walk a "a really fine line" amid inflation pressures. "Can they afford to be dovish when everyone is so hyper sensitive on what central banks are doing to combat and fight inflation? On the flip side, they don't want to add equal fuel to the fire to sell off rates even further, and then maybe, that eventually will matter for other asset classes," Goncalves said, noting that a potentially sped-up tapering could spark a selloff in Treasuries.

Later on Monday, the U.S. Treasury will disclose its quarterly borrowing projections, with an announcement of upcoming auction sizes, which are expected to be reduced, to follow on Wednesday.

October Jobs Data

On Friday, the government will release employment data for October. Yields at the longer end of the curve ticked lower after Institute for Supply Management data showed manufacturing activity slowed in October. The two-year yield, which hit a 19-month peak last week, was last up 1.6 basis points at 0.511%. The five-year yield, another part of the curve that is sensitive to Fed rate expectations, was last 1.9 basis points higher at 1.2074%.

After flattening last week, a closely watched part of the yield curve that measures the gap between yields on two- and 10-year Treasury notes was last 2.10 basis points steeper at 107.40 basis points. The spread between five-year notes and 30-year bonds also steepened 2.10 basis points at 76.90 basis points.