(Updates with market activity) By Ross Kerber Nov 8 (Reuters) - Traders sent most U.S. Treasury yields higher on Monday after Congress passed a $1 trillion infrastructure bill and demand was soft for three-year notes at auction. The benchmark 10-year yield was up 4.5 basis points at 1.4984%. Analysts said the trading reflected factors including the passage of a long-delayed $1 trillion infrastructure bill in Washington over the weekend and a response to a volatile session on Friday after a strong jobs report that sent the benchmark note as low as 1.436%. "Friday’s drop in yields was a little too much, too quickly, and now the market’s trying to find its equilibrium," said Bryn Mawr Trust analyst Jim Barnes. Stocks were higher on Monday, also influencing debt markets. The U.S. Treasury found soft demand at an auction of $56 billion of 3-year notes at midday, according to Barnes and to BMO rates strategist Ben Jeffery. Auctions of 10-year notes and 30-year bonds will follow on Tuesday and Wednesday. Wednesday is also the scheduled release date for consumer price index data, which will be closely watched as a gauge of inflation. U.S. Federal Reserve officials on Monday turned their focus toward a debate over monetary policy that will heat up in coming months as the Fed slows the pace of its asset purchases, clearing the decks for interest rate hikes as soon as next year. Despite the positive news on jobs and infrastructure, BMO Capital Markets" head of U.S. rates strategy Ian Lyngen said it was still noteworthy the yield on the 10-year note was below 1.5%, after reaching as high as 1.705% in October. After the three-year auction, the yield on the 10-year touched as high as 1.5037%, then fell back. The pattern reflected the Fed"s shift to a hawkish stance and consequent moderating of growth and inflation expectations, Lyngen said. "All the bond-bearish scenarios the market had contemplated have come to fruition," he said. A wrinkle, he said, is that breakeven rates remain high, indicating concerns about global growth. The 10-year TIPS yield was at -1.12% and the breakeven inflation rate was at 2.624%, below its peak in October of nearly 2.7%, the highest since 2006. A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at 105 basis points, about a basis point higher than Friday"s close. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 4.2 basis points at 0.4466%. November 8 Monday 3:30 p.m. New York / 2030 GMT Price Current Net Yield % Change (bps) +Three-month bills 0.04 0.0406 -0.005 Six-month bills 0.06 0.0609 -0.007 Two-year note 99-220/256 0.4466 0.048 Three-year note 99-184/256 0.7221 0.070 Five-year note 100-2/256 1.1234 0.069 Seven-year note 99-246/256 1.3809 0.066 10-year note 97-192/256 1.4984 0.045 20-year bond 97-104/256 1.9081 0.016 30-year bond 102-132/256 1.8891 0.003 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 19.75 0.50 spread U.S. 3-year dollar swap 19.50 -0.75 spread U.S. 5-year dollar swap 8.75 0.00 spread U.S. 10-year dollar swap 2.50 0.75 spread U.S. 30-year dollar swap -21.00 1.50 spread (Reporting by Ross Kerber in Boston; Editing by Toby Chopra, Cynthia Osterman and Alison Williams)