Treasury prices declined on Monday, pushing yields to the highest levels seen in two weeks, as bond traders prepared for the government's sale of 3- and 10-year notes and 30-year bonds this week.

Short-term debt pared losses in mid-day trading as U.S. stocks turned lower, signaling a reduction in demand for riskier assets.

The yield on the 10-year note rose 2bps to 3.71%, the highest since Feb. 22. Yields on 2-year notes recently turned lower, falling 1 basis point to 0.89%, after touching the highest level since Feb. 19.

The selling in government bonds followed a move lower on Friday on the heels of a better-than-expected U.S. payrolls report.

On Monday, the Treasury Department sold $26B in 3-month bills and $28B in 6-month bills. One-year bills, 56-day bills and 1-month bills will also be issued this week. Yet bill auctions tend not to have much influence over the broader market for Treasurys. The amounts of 10-year notes and 30-year bonds match what was sold at the last reopenings, in January.

The government has been selling massive amounts of debt to finance its spending and make up for smaller tax receipts. Still, analysts note that Washington has at least stopped increasing the sizes of auctions almost every month, as it did through much of last year.

Also weighing on Treasury bonds, Ameriprise Financial AMP and overseas companies are expected to be among a large group of corporate bond issuers for the U.S. market this week, analysts said. Hasbro HAS and Southern California Edison also announced plans to sell debt. 

Expectations of big corporate sales can push around the government debt market as companies and traders enter into so-called rate lock agreements, in which they bet on Treasury prices falling to guard against the effect that higher yields would have on the planned debt sale. Once the debt is sold, the hedges are reversed.