By Deborah Levine
NEW YORK (MarketWatch) -- Treasury yields rose and the U.S. dollar retraced and earlier decline on Thursday after the Institute for Supply Management's index on the manufacturing sector rose to 59.6 in March, a bigger improvement than analysts expected. Yields on 10-year notes (UST10Y 3.87, +0.04, +1.07%) , which move inversely to prices, rose 3 basis points to 3.86%. The dollar index (DXY 81.05, -0.03, -0.03%) , which measures the greenback against a trade-weighted basket of six major currencies, traded at 81.053, compared to 81.062 in North American trade late Wednesday, after heading down slightly in earlier trading. The euro bought $1.3502, versus $1.3512 Wednesday.