Treasury traded mostly flat on Monday, as investors appeared to take a breather after last week's hotter-than-expected inflation prints caused some investors to ditch U.S. debt.

The yield on the benchmark 10-year Treasury note rose to 1.64%, while the yield on the 30-year Treasury bond dipped to 2.354%. Yields move inversely to prices.

Data last week showed the Consumer Price Index jumped 4.2% from a year earlier in April, the fastest rate since 2008. The larger-than-expected rise in inflation intensified fears that the Federal Reserve could be forced to start tapering its easy monetary policy if the U.S. economy heats up too quickly.

"In Treasuries, yields rose sharply in reaction to the CPI report as the 10-year yield hit 1.68%, a near-10-week high," wrote Tom Essaye, editor of The Sevens Report. "With inflation clearly accelerating in the coming months and the outlook for global central banks slowly shifting towards less accommodation, the trend in Treasury yields is higher."

The central bank has said it expects inflation to climb this year as a reopening of the U.S. economy and a reduction of Covid-19 cases rekindles demand for travel, dining and a variety of other goods and services.

But Fed officials have said they anticipate the 2021 rise to be transient and to fall short of its new goal of averaging 2% over time. The central bank wants to see prices rise faster than 2% for some time to make up for periods of lower inflation before making significant changes to monetary policy.

Investors will be keeping a close on eye on Fed minutes from the previous policy meeting, set to come out Wednesday, for any clues as to the central bank's thoughts on inflation.

The NAHB Housing Market Index for May is set to come out at 10 a.m. ET on Monday.

Fed Vice Chair Richard Clarida is due to make a speech on sovereign markets at the Federal Reserve Bank of Atlanta Financial Markets at 10:05 a.m. ET.

— CNBC's Yun Li contributed to this report.