TREASURIES-Treasuries turn lower on growth in U.S. manufacturing

NEW YORK, Oct 1 (Reuters) - U.S. Treasuries prices turned lower on Monday after the Institute for Supply Management reported U.S. manufacturing grew in September, contrary to market expectations.

The benchmark 10-year Treasury note , up 2/32 before the report, was down 2/32 afterwards, allowing its yield to rise to 1.65 percent from 1.63 percent earlier.

The U.S. manufacturing sector grew in September for the first time since May, the ISM reported.

(Reporting by Ellen Freilich; Editing by James Dalgleish)

((ellen.freilich@thomsonreuters.com 646-223-6309))

Keywords: MARKETS BONDS/