* Traders unwind Ukraine bids before Friday payroll data
* U.S. jobless claims tumble to three-month low
* U.S. seen selling $64 billion coupon debt next week
* Fed to buy $1 bln to $1.25 bln debt due 2036-2044
By Marina Lopes
NEW YORK, March 6 U.S. Treasury debt prices fell
on Thursday as investors unwound safe-haven bids spurred by the
Ukraine crisis ahead of Friday's key nonfarm payrolls report and
following data showing fewer Americans than expected filed new
claims for jobless benefits.
Investors finished reducing their bond holdings on the
Ukraine crisis as they looked ahead to results from a referendum
vote due in 10 days that will decide whether Crimea will become
a part of Russia.
"German Bunds were sensitive to the Ukraine situation and
sold off a bit. Treasuries and other safe havens have followed,"
said Steve Van Order, a fixed income strategist with Calvert
Investments in Bethesda, Maryland.
Wednesday's weak private employment data and a severe winter
have clouded predictions for Friday's unemployment report, said
"You could have almost anything come out tomorrow," he said.
The number of Americans filing new claims for unemployment
benefits hit a three-month low last week, a sign of strength in
a labor market that has been hobbled by severe weather. That
sent yields to a session high of 2.7410 percent.
Losses were capped by the European Central Bank's decision
to leave interest rates unchanged, holding its nerve in the face
of uncomfortably low inflation.
Ten-year notes were last down 14/32 in price,
pulling yields up to 2.745 percent after Wednesday's close of
2.696 percent. Thirty-year bonds fell 22/32, sending
yields to 3.682 percent from Wednesday's close of 3.644 percent.
Traders see 10-year note yields finding support at 2.75
percent, the 100-day moving average and resistance at the 2.60
The Federal Reserve will buy between $1.00 billion and $1.25
billion of debt maturing between 2036 and 2044.
At 11:00 a.m. (1600 GMT), the Treasury will announce the
size and date of auctions for three-month and six-month bills as
well as three-year, 10-year and 30-year bonds next week.
Analysts forecast the Treasury will sell a combined $64
billion in three-year, 10-year and 30-year debt.