* U.S. private payrolls adjusted higher in Feb
* Traders eye Friday nonfarm payrolls report
By Sam Forgione
NEW YORK, April 2 (Reuters) - 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 Philadelphia.
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