Yields fall after U.S. manufacturing data at 10-year low

• The two-year yield fell to a three-week low, last down 4.2 basis points to 1.580pc.
• The two-year yield is a proxy for investor expectations of the direction of the Federal Reserve's interest-rate policy.

NEW YORK: U.S. Treasury yields across maturities fell to session lows Tuesday after the Institute for Supply Management's U.S. manufacturing activity index fell to its lowest level since June 2009.

The two-year yield fell to a three-week low, last down 4.2 basis points to 1.580pc.

The two-year yield is a proxy for investor expectations of the direction of the Federal Reserve's interest-rate policy.

Expectations that the Fed will cut rates at its October meeting rose to 54.0pc on Tuesday from 39.6pc the previous day according to CME Group's FedWatch tool.