* U.S. ISM manufacturing PMI close to target
* Traders await U.S. non-farm payrolls
By Sam Forgione
NEW YORK, July 1 U.S. Treasuries yields rose on Tuesday after traders reconsidered recent bullish bets on U.S. bonds on nervousness ahead of Thursday's closely watched U.S. jobs report.
The yield on 30-year Treasury bonds hit a near one-week high of 3.39 percent on fears bullish positions could lead to losses if the U.S. government reports stronger-than-expected non-farm payrolls later this week.
"Nobody wants to go into this one with a strong position on," said Gennadiy Goldberg, interest rate strategist with TD Securities in New York. He added traders were trying to minimize their losses by selling Treasuries.
Economists expect Thursday's jobs report to show U.S. employers added 212,000 jobs in June, down from 217,000 in May, according to a Reuters poll.
Data on U.S. manufacturing and construction spending released on Tuesday had little impact on Treasuries yields.
The Institute for Supply Management said its index of national factory activity was 55.3 in June, almost unchanged from May's 55.4 reading. The figure was just under the 55.8 reading expected by a Reuters poll of economists.
Financial data firm Markit, meanwhile, said its final U.S. Manufacturing Purchasing Managers Index rose to 57.3 in June, the highest reading since May 2010. The preliminary read for the index was 57.5.
The Commerce Department said construction spending edged up 0.1 percent in May to an annual rate of $956.1 billion. Economists polled by Reuters had expected construction spending to advance 0.5 percent after a previously reported 0.2 percent gain.
"The data did not surprise the market," said Dimitri Delis, fixed income strategist at BMO Capital Markets in Chicago. "The non-farm payrolls is the more significant and important metric."
Benchmark 10-year Treasury notes last traded 11/32 lower in price to yield 2.56 percent, from a yield of 2.52 percent late Monday. U.S. 30-year Treasury bonds last traded 28/32 lower in price for a yield of 3.39 percent, versus 3.34 percent late Monday.
The benchmark Barclays U.S. Aggregate Bond Index gained 2 percent in the second quarter, leading to a gain of 3.9 percent in the first half of the year. The Barclays U.S. Treasury index rose 1.4 percent in the second quarter, closing out a gain of 2.7 percent for the first half.
On Wall Street, the benchmark S&P 500 stock index was last up 0.46 percent.
(Reporting by Sam Forgione; Editing by Meredith Mazzilli)