TREASURIES-Bonds slip after data add to hopes of job growth

* ADP, ISM services data add to view of likely job growth

* Stock losses, sovereign worries curb bond losses

* Some positioning following refunding announcement (Updates market activity, adds comments)

By Tom Ryan

NEW YORK, Feb 3 (Reuters) - U.S. Treasuries prices fell on Wednesday after separate reports suggested the economy could be headed toward job creation, raising the possibility of higher interest rates and reducing the appeal of low-risk government securities.

The market's losses were limited, however, as major U.S. stock indexes fell and worries spread over sovereign credit risks in Europe.

Treasuries price declines were also restricted by concerns about fiscal pressures mounting in Greece and their potential impact on other euro-zone economies such as Spain and Portugal.

"Concerns over the peripheral debt in Europe are definitely providing a safety bid into Treasuries," said Jessica Hoversen, fixed income market analyst at MF Global Research in Chicago.

The cost of insuring Greek government debt against default rose to 402,900 euros per 10 million euros of exposure from 387,300 euros at the New York close on Tuesday, according to credit default swap prices from CMA DataVision.

The cost to insure against government debt defaults by Spain and Portugal spiked higher. Click on [ID:nLDE61227H]

Some investors also began selling bonds to make room for next week's U.S. government debt sales.

The Treasury Department said it will sell $81 billion of new notes next week, as part of its quarterly refunding. For more, click on [ID:nN03139438].

The refinancing will be comprised of $40 billion of three-year notes, $25 billion of 10-year notes, and $16 billion of 30-year bonds.

The government also said the issuance of Treasury Inflation-Indexed Protected Securities will gradually increase.

EMPLOYMENT MAY OFFER HOPE

Data in the United States showed domestic private employers cut 22,000 jobs in January, fewer than the 61,000 jobs lost in December, according to the ADP National Employment Report. For more, click on [ID:nWEN9595]

"A lot of guys think the ADP is a harbinger, so maybe there's a chance that Friday's nonfarm payrolls could be a slight positive," said Michael Skinner, a bond trader at Wall Street Access in New York.

The median forecast in a Reuters survey for nonfarm payrolls is for an increase of 5,000 when the U.S. Labor Department reports the figures on Friday.

The ADP report on Wednesday was followed by the latest services sector readings from the Institute for Supply Management. The group said its employment index on the services sector rose to its highest level since August 2008. For more, see [ID:nWEN9611]

The overall index climbed to 50.5 in January, up slightly from December but a tad below analyst forecast.

The benchmark 10-year Treasury note US10YT=RR was last down 9/32 in price at 97-19/32 after hitting a session low of 97-13/32. Its yield, which moves inversely to its price, was last 3.67 percent, up from 3.63 percent on Tuesday.

Major U.S. stock indexes fell, with the Dow Jones industrial average down 0.23 percent, the Standard & Poor's 500 Index off 0.45 percent and the Nasdaq Composite Index down 0.2 percent. (Reporting by Tom Ryan; Editing by Padraic Cassidy)