July 2, 2014 / 8:05 PM / in 3 years

REFILE-TREASURIES-U.S. yields rise after ADP data signals strong nonfarm payrolls

(Deletes extraneous bullet point)
    * U.S. ADP employment report beats expectations
    * U.S. factory orders data weaker than expected
    * Traders await U.S. nonfarm payrolls

    By Sam Forgione
    NEW YORK, July 2 (Reuters) - U.S. Treasuries yields rose on
Wednesday after more robust than expected private-sector jobs
data ratcheted up expectations for a stronger U.S. nonfarm
payrolls report on Thursday. 
    U.S. companies hired 281,000 workers in June, marking the
biggest monthly increase since November 2012, the ADP National
Employment Report showed. That was well above economists'
expectations for 200,000 jobs, according to a Reuters poll.
 
    "It was an unassailably good number - you couldn't fault
it," said David Keeble, global head of interest rates strategy
at Credit Agricole Corporate and Investment Bank in New York. He
said his firm had raised its expectations for nonfarm payrolls
to 250,000 from 220,000 after the ADP report.
    Economists expect U.S. employers to have added 212,000 jobs
in June, down slightly from 217,000 jobs in May, according to a
Reuters poll.
    Safe-haven Treasuries prices stayed lower despite data
showing a drop in new orders for U.S. factory goods in May. The
Commerce Department said on Wednesday new orders for
manufactured goods decreased 0.5 percent. That was steeper than
the 0.3 percent decline forecast by analysts. 
    An acceleration in private jobs growth was "a much more
important piece of information than the minor difference in
factory orders," said Robert Tipp, chief investment strategist
at Prudential Fixed Income in Newark, New Jersey.
    Analysts said remarks by U.S. Federal Reserve Chair Janet
Yellen had no discernible effect on Treasuries prices. Yellen,
who spoke at an event hosted by International Monetary Fund
Director Christine Lagarde, said monetary policy faces
"significant limitations" as a tool to counter financial
stability risks. 
    "Most of what (Yellen) said was fairly accepted in academic
circles - it wasn't really breaking fresh ground," said Credit
Agricole's Keeble.
    Benchmark U.S. 10-year Treasury notes were last
down 16/32 in price to yield 2.62 percent, up from a yield of
2.57 percent late Tuesday. The yield earlier hit 2.63 percent,
its highest in over a week. 
    U.S. 30-year Treasury bonds were last down
1-5/32 in price to yield 3.46 percent, from a yield of 3.40
percent late Tuesday. The yield earlier hit 3.47 percent, its
highest level in almost two weeks. 
    Yields on short- and medium-dated Treasury notes also rose.
U.S. 7-year Treasury notes were last down 11/32 to
yield 2.22 percent, from a yield of 2.17 percent late Tuesday.
The yield earlier hit a near two-week high of 2.23 percent.
    U.S. stocks were little changed after the positive ADP
report was not enough to fuel buying ahead of the nonfarm
payrolls data. The benchmark S&P 500 stock index last
traded nearly flat. 

 (Reporting by Sam Forgione; Editing by Peter Galloway and Dan
Grebler)

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