“At this moment, Treasury investors feel the yield is not at an attractive level to buy more, so that’s why their first instinct is to sell,” Kazuaki Oh’E, head of fixed income at CIBC World Markets Japan Inc., told Bloomberg. “But in a relative sense, the Treasury yield is really attractive compared to the rest of G-7, so it’s not going to rise too much.”

While benchmark 10-year Treasury yields are back below 2%, Treasury bond yields still look more attractive for foreign investors. For instance, yields on 10-year German bunds is 0.22% and yields on 10-year Japanese government bonds is 0.03%. The yields on 10-year Treasuries offered a 96 basis-point premium over that of the average Group of Seven peers Monday.

Looking ahead, fixed-income investors are waiting on Fed chair Janet Yellen to appear before the House Financial Services Committee Wednesday and her address to the Senate Banking Committee Thursday.

Max Chen contributed to this article.