US Treasury yields fall after economic data release

US Treasury yields turned lower today, Oct. 1, as investors assessed US companies’ direction to cut jobs for the third time in four months, reflecting a further deterioration in the US labor market.

The yield on the 10-year note fell five basis points (bps) to 4.104% at 3:38 PM Makkah time, after touching 4.172% earlier in the session.

The yield on the two-year US note, the most sensitive to monetary policy changes, fell six bps to 3.557%, after hitting 3.625%. Further, the yield on the 30-year note slid by more than two bps to 4.703%.

According to ADP data released today, the US private sector lost 32,000 jobs in September, against forecasts for the addition of 50,000 new openings. August's data was adjusted to show a loss of 3,000 jobs, compared to the 54,000 jobs added in last month's report.

This report came amid a federal government shutdown, making it the only available source of information currently available on the US labor market. The release of the monthly jobs report is expected to be postponed until the partisan budget dispute in Washington is resolved.