TREASURIES-Prices slip as investors choose stocks
* Wall Street stocks poised for higher open * Fed's Kocherlakota, Lockhart, Lacker and Evans to speak * U.S. payrolls report, due Friday, to be key influence By Ellen Freilich NEW YORK, April 2 (Reuters) - Prices of U.S. Treasuries slipped on Tuesday as European shares extended gains and U.S. stocks looked poised for a stronger open, mildly damping demand for safe-haven U.S. debt. The price cuts in Treasuries were modest, though, amid continued concern about the impact of the Cyprus bailout and another below-50 reading in the euro zone's Purchasing Managers Index on manufacturing, the 20th month in a row where the reading reflected contraction. "Ten-year Treasury notes sold off as European stocks opened higher and spreads on peripherals tightened," said Tom DiGaloma, managing director at Navigate Advisors LLC, referring to the sovereign debt of geographically peripheral European nations. "Despite euro zone unemployment at 12 percent and issues in Cyprus still unresolved as it relates to the banks, there seems to be a 'risk on' move taking place," he said. Treasuries' mild retreat after a modest rise on Monday pointed to some caution ahead of labor market data due later this week, starting with the ADP report on Wednesday and concluding with the U.S. March payrolls report on Friday. "Treasuries might struggle for significant direction ahead of Friday's employment report," said John Canavan, fixed-income analyst at Stone & McCarthy Research Associates in Princeton, New Jersey. Benchmark 10-year Treasury notes were down 7/32, their yields rising to 1.86 percent from 1.84 percent on Monday. "With long-end supply coming next week, we favor selling 10-years near 1.83 percent support given that we have a job growth figure Friday that will most likely print north of 200,000," DiGaloma said. The number of jobs added to non-farm payrolls, as reported by the U.S. Labor Department on Friday, will be closely scrutinized for signs of further improvement in hiring. According to the median estimate of economists polled by Reuters, the report is expected to show that 200,000 jobs were added in March. Reports on U.S. February factory orders and March vehicles sales due Tuesday are expected to get some attention, but typically are not market movers. Two Federal Reserve bank presidents are scheduled to speak during the day: Fed Bank of Minneapolis President Narayana Kocherlakota at 1 p.m. (1700 GMT) and Fed Bank of Atlanta President Dennis Lockhart at 1:30 p.m. (1730 GMT). Fed Bank of Chicago President Charles Evans and Fed Bank of Richmond President Jeffrey Lacker participate in a panel on monetary policy at 7:30 p.m. (2330) GMT.