TREASURIES-US yields extend fall after service sector data

By Gertrude Chavez-Dreyfuss

NEW YORK, Feb 5 (Reuters) - U.S. Treasury yields extended their declines on Wednesday after data showed the U.S. services sector activity unexpectedly slowed in January.

The Institute for Supply Management (ISM) said on Wednesday its nonmanufacturing purchasing managers index (PMI) slipped to 52.8 last month from 54.0 in December. Economists polled by Reuters had forecast the services PMI edging up to 54.3.

The bencmark 10-year yield dropped to its lowest since mid-December after the data. It was last down 9.3 bps at 4.420% US10YT=RR. The two-year yield fell to its weakest level since Dec. 12. It last changed hands at 4.170%, down 4.2 bps.