U.S. government bond prices edged up Monday after the European Central Bank said it wasn't planning to cap borrowing costs for the region's struggling countries.

The price of the 10-year Treasury note rose 6.25 cents for every $100 invested. The higher price nudged the yield down to 1.81 percent from 1.82 percent late Friday.

The European Central Bank played down a report that said the ECB may cap borrowing rates for struggling European governments. The report in Germany's Der Spiegel over the weekend had lifted Treasury yields in early trading.

Treasury yields quickly reversed course after the ECB reportedly called the story misleading.

Developments in the European debt crisis have driven the direction of Treasury trading all year long. Worries over Europe drive bond traders into Treasurys, pushing yields down. Signs that European leaders are trying to calm the crisis drive traders out of Treasurys, pushing yields up.

In other trading Monday, the 30-year Treasury bond rose 15.6 cents, while its yield dropped to 2.92 percent from 2.93 percent late Friday. The yield on the two-year note dipped to 0.29 percent from 0.30 percent.

The yield on the three-month Treasury bill was unchanged at 0.08 percent.