NEW YORK, Sept 3 (Reuters) - U.S. Treasury yields

dropped on Wednesday after data showed job openings fell in

July, reflecting a softening labor market and reinforcing

expectations of an interest rate cut by the Federal Reserve

later this month.

The Bureau of Labor Statistics' Job Openings and Labor

Turnover Survey or JOLTS showed that job openings fell to 7.181

million by the last day of July. Economists polled by Reuters

had forecast 7.38 million unfilled jobs.

U.S. two-year yields, which are tied to interest rate

policy, slid 5.4 basis points (bps) to 3.604%. The

benchmark 10-year yield also fell, down 5.8 bps at 4.217%

.