* U.S. private payrolls adjusted higher in Feb
* Traders eye Friday nonfarm payrolls report
By Sam Forgione
NEW YORK, April 2 U.S. Treasuries yields edged
higher on Wednesday after data showed U.S. private payrolls were
revised higher, supporting expectations of a strong nonfarm
payrolls report on Friday.
The ADP National Employment Report showed U.S. private
employers added 191,000 workers in March, slightly below
economists' expectations, but private payrolls for February were
adjusted higher to 178,000 from the previously reported 139,000.
"The upward revision certainly increases the chance of a
strong number on Friday," said Ellis Phifer, market strategist
at Raymond James in Memphis, Tennessee.
Traders are watching Friday's report closely for signs of an
improving U.S. economic outlook after cold weather hurt U.S.
economic data at the start of the year, and for hints of when
the U.S. Federal Reserve could begin raising interest rates.
U.S. employers are expected to have added 200,000 jobs in
March, according to the median estimate of economists polled by
Reuters, up from 175,000 in February.
Fed Chair Janet Yellen defended the Fed's stimulative
policies Monday, marking a more dovish turn after suggesting on
March 19 that the central bank could raise interest rates
earlier than expected.
"A particularly strong jobs report could be negative for
medium-term Treasuries under the expectation that the Fed will
pull forward its first rate hike," said Guy LeBas, chief fixed
income strategist at Janney Montgomery Scott LLC in
The benchmark 10-year U.S. Treasury note eased
11/32 in price to yield 2.8 percent, compared to a yield of 2.76
percent late Tuesday. The 30-year Treasury bond
price fell 24/32 to yield 3.65 percent, compared to a yield of
3.6 percent late Tuesday.
Medium-term yields also rose slightly. The 5-year Treasury
note fell 6/32 in price to yield 1.78 percent, compared to a
yield of 1.74 percent late Tuesday.
(Editing by Bernadette Baum)