* Yields hold at higher levels after payrolls report * Treasury to sell $72 bln in new 3, 10, 30-year debt * Fed will buy $2.75 bln - $3.50 bln in debt due 2020-2023 By Karen Brettell NEW YORK, May 6 (Reuters) - U.S. Treasuries prices slipped slightly on Monday as investors continued to digest Friday's better than expected jobs report, which sent yields surging to their highest levels in three weeks. The U.S. government bonds are expected to stay at the relatively higher yields as investors prepare for $72 billion in new supply this week. Friday's jobs gains caught traders offside, as most were anticipating a gloomier jobs picture after other economic releases pointed towards more sluggish growth. "There was a significant amount of buying and short covering and capitulation around month-end and prior to that number, with expectations having been lowered substantially going in," said Dan Mulholland, managing director in Treasuries trading at BNY Mellon in New York. The positive jobs surprise, with employers adding 165,000 jobs in April and the jobless rate falling to 7.5 percent, the lowest since December 2008, left traders scrambling to cover long exposures and sent yields surging. Benchmark 10-year Treasuries yielded 1.75 percent on Monday, near their closing levels from Friday, after jumping from 1.62 percent before the jobs data was released. Thirty-year bonds yielded 2.97 percent on Monday, they are up from 2.82 percent before the jobs report. The higher yields may help demand for new Treasury sales this week, including $32 billion in three-year notes on Tuesday, $24 billion in 10-year notes on Wednesday and $16 billion in 30-year bonds on Thursday. The Fed will purchase Treasuries every day next week as part of its ongoing purchase program, including between $2.75 billion and $3.50 billion in notes due 2020 to 2023 on Monday.