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UST yields plunged after the ADP report shocked markets with a 32,000 drop in private payrolls and a downward revision of August, reinforcing views that the labor market is losing steam and adding urgency to Fed easing expectations. 10Y yields sank below 4.10% (approaching ~4.088%) as buyers rushed into duration, while 2Y yields also fell meaningfully, flattening the curve amid a “bad news is good news” trade. The drop in yields reflected a convergence of forces: weak labor data, ongoing U.S. government shutdown limiting official releases (shifting reliance onto private data), and growing conviction that the Fed will need to cut rates aggressively to counter economic slack. The yield move also echoed concerns about term premium behavior: with issuance looming and fiscal risks rising, investors are increasingly sensitive to how much compensation they demand for holding longer maturities. That dynamic may dampen how far yields can fall even under dovish pressure. With uncertainty now heightened, markets will closely monitor upcoming inflation prints, shutdown developments, and Fed commentary to recalibrate expectations.