* 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.
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
"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)