The 10-year Treasury yield fell 3.3 basis points to 4.896%, and the 30-year yield dropped 3.8 basis points to 5.271% as oil prices fell more than 7%. October manufacturing PMI rose to 55.5 from 54.5 in September.
Longer-dated US Treasury yields declined on Monday as oil prices dropped more than 7% after Iran indicated it was open to peace talks. The 30-year yield reached its lowest level since September 9, while the 10-year yield touched its lowest since September 10.
Investors also awaited the November 3 US midterm elections, which will decide whether Republicans retain control of Congress. Some investors favored fixed income amid estimates Democrats could take the House and possibly the Senate; one strategist said investors were hedging against a potential equity selloff.
The US Treasury said it expects to borrow $618 billion in the fourth quarter, $10 billion less than projected in August. The Institute for Supply Management reported that manufacturing PMI rose to 55.5 in October from 54.5 in September, above economists’ estimate that it would remain unchanged.
