USD strengthened against its major rivals in the European session on Monday as the U.S. Treasury yields rose after a disappointing U.S. jobs report increased expectations for additional fiscal stimulus. The 10-year yield is currently up almost two basis points to 1.19% compared to  0.92% at the beginning of the year. 

The House of Representatives approved a budget resolution on Friday, setting the stage for passage of the president Joe Biden's  $1.9 trillion COVID-19 relief package.

On Sunday, the U.S. Treasury Secretary Janet Yellen endorsed a massive stimulus package, which should include checks to American workers who earn $60,000 per year. She also suggested that the full employment could return next year if Biden's proposed $1.9 trillion coronavirus relief bill was approved by Congress. Otherwise, she added, unemployment would linger for years.

Prospects of more stimulus raised fears of inflation rising, leading to a selloff in the U.S. Treasuries. However, Yellen noted that "we have good tools to deal with that risk if it materializes".