U.S. Treasury yields fell on Monday as traders continued to digest strong numbers in the latest jobs report and braced for key inflation figures due out later this week.

The 2-year dropped 5 basis points to trade at 3.07% but remained above the 10-year Treasury which dropped 11 basis points to 2.99%, dropping back below the 3% mark. The yield on the 30-year Treasury bond traded 9 basis points lower at 3.175%. Yields move inversely to prices, and a basis point is equal to 0.01%.

Investors are looking ahead to key inflation data this week. The June consumer price index will be released Wednesday and is expected to show headline inflation, including food and energy, rising above May's 8.6% level.

Traders and analysts are continuing to watch the bond market for clues that inflation has rolled over.

"The bond market doesn't have to go down a lot more but if it stays down here, I think that's going to eventually pay handsomely for stock investors," said Jim Paulsen, chief investment strategist for the Leuthold Group.

On the data front, the June producer price index is due out Thursday and the University of Michigan consumer sentiment report for July will be released Friday.

Monday's moves come after Friday's June employment report showed jobs growing at a faster clip than expected. Nonfarm payrolls increased 372,000 last month, according to the Bureau of Labor Statistics. Economists predicted the U.S. economy would add 250,000 jobs, according to the Dow Jones.

Yields jumped Friday after the release with the report likely to keep the U.S. Federal Reserve more aggressive with its rate-hiking path.

— CNBC's Tanaya Macheel, Carmen Reinicke and Jeff Cox contributed to this report.