Treasurys are rallying

US Treasurys are rallying on Monday after sellers attempted to drive prices down to last week's lows, but failed. Early buying has yields down close to 5 basis points in the belly of the curve, but yields have managed to hold their lows despite the soft preliminary Markit services PMI data. Here's a look at the scoreboard as of 10:42 a.m. ET:

• 2-year -2.6 bps at 1.226%
• 3-year -3.8 bps @ 1.558%
• 5-year -4.2 bps @ 2.023%
• 7-year -4.7 bps @ 2.355%
• 10-year -3.7 bps @ 2.555%
• 30-year -3.4 bps @ 3.140%

The benchmark 10-year yield reached 2.64% late last week, but struggled to get back above the 2.60% level in early US trade. Depite Monday's drop in yield, the 10-year remains on track to post its first bullish outside year (When the yield closes above last year's year after its low traded below last year's) since the bond bull market began in 1981, according to Jon Krinsky of MKM Partners.

Monday's bid has caused some slight steepening to take hold along the yield curve with the 5-30-year spread wider at 112 bps.