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TREASURIES-U.S. bonds weaken after ISM report

NEW YORK | Wed Oct 3, 2012 10:13am EDT

NEW YORK Oct 3 (Reuters) - U.S. Treasuries prices weakened on Wednesday after a report on the U.S. service sector in September looked stronger than forecast.

But a subdued reading on the Institute for Supply Management service sector index's employment component balanced out the better-than-expected reading on the overall index.

The benchmark 10-year Treasury note, which was down 2/32 in price just before the ISM report came out, extended its loss to 6/32, leaving its yield at 1.64 percent, in the middle of its 2-1/2-month range.

Trade in subdued volume and narrow ranges is expected before the Labor Department's influential employment data for September due this Friday.

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