Treasuries rose on Monday in light trading as bond investors expected a Federal Reserve cut in the benchmark interest rate later in the week.

The Federal Reserve is expected to make a quarter point cut in its Fed funds rate - the overnight rate commercial banks can charge each other - to give the slowing economy a slight boost.

In recent months, the Fed has moved aggressively to keep the U.S. from slipping into recession. However investors are betting that rate cuts will slow as concerns about inflation rise.

Benchmark 10-year Treasury notes rose 10/32 price late Monday to yield 3.831 percent. Two-year notes were up 5/32 in price to yield 2.350.

Looking ahead, the U.S. Labor Department will release employment data, giving investors a glimpse at how the nation is doing under current economic conditions.

Inflation