U.S. Treasury bonds traded flat to higher on Monday, ahead of the Federal Reserve's policy decision on Wednesday.
Yields on benchmark 10-year Treasury notes (U.S.:US10Y)-used to calculate mortgage rates and other consumer loans-held steady at 2.61 percent, after gaining last week.
Five-year notes (U.S.:US5Y) and 30-year notes (U.S.:US30Y) were narrowly higher on Monday.
The Fed's statement is due on Wednesday with a press conference with Chair Janet Yellen shortly afterwards. Investors are anxious to learn when the central bank might opt to hike interest rates.
"U.S. data is now consistently humming...this is causing mass speculation that a language change to the (Fed's) statement is imminent," Evan Lucas, a strategist at IG Markets said in a research note.
Data due on Monday includes the Empire Manufacturing report for September at 8:30 a.m. ET and the Fed's monthly industrial production and capacity utilization report at 9:15 a.m.
Over the weekend, China released a raft of data that raised concerns about a weakening economy. August industrial output rose 6.9 percent on year, its slowest pace since 2008 , while fixed-asset investment and retail sales both missed forecasts.
Read More Is fresh China stimulus a done deal?
Geopolitics also weighed on sentiment, with fighting reported in eastern Ukraine on Saturday after an eight-day ceasefire.
Meanwhile, Australia became the first country to join the U.S.coalition fighting Islamic State militants and U.K.Prime Minister David Cameron said he was considering increasing military participation following the beheading of a British hostage .
-By CNBC's Katy Barnato