US Treasury Yields Decline Across Maturities Amid Slowdown in Manufacturing Expansion

11:45 AM EDT, 10/01/2026 (MT Newswires) -- Most US yields fell after midday Thursday as bets favoring near-term monetary policy tightening declined amid a deceleration in manufacturing growth. The 2-year government bond yield retreated 6.9 basis points to 4.816%. The 10-year fell 2.1 basis points to 5.272%, after hitting an intraday high of 5.342%, its highest since 2002. The 30-year rate leaned slightly lower to 5.631%, which is its strongest level since 2002. The Institute for Supply Management's US manufacturing index fell to 54.5 in September from 54.6 in August, compared with expectations for an increase to 55.0 in a survey compiled by Bloomberg. The S&P Global US manufacturing index for September was revised downwards to 55.9 from the flash reading of 57.0, compared with expectations for no revision in a survey compiled by Bloomberg. Employers in the US announced 43,281 layoffs in September, down 18% from the month prior and 20% year over year, according to Challenger, Gray & Christmas' latest report. Traders slashed the probability of the Federal Reserve raising its target rate by 25 basis points in October to 34% from 69% a week ago, according to the FedWatch tool.