By Nick Godt, MarketWatch NEW YORK (MarketWatch) -- Treasury prices fell and yields rose Thursday as investors digested a full plate of U.S. economic reports on the eve of pivotal data about nonfarm payrolls and unemployment for May. Payroll processor ADP said U.S. private-sector payrolls expanded by 55,000 in May, fewer than expected. Economists surveyed by MarketWatch had been looking for growth of 100,000 jobs in the private sector last month. And the government reported first-time jobless claims fell by 10,000 to stand at 453,000 last week. Economists surveyed by MarketWatch had expected initial claims to fall to 455,000. Yields on benchmark 10-year Treasury notes (UST10Y 3.37, +0.03, +0.78%) moved up 3 basis points to 3.375%. Yields on two-year notes (UST2YR 0.82, +0.00, +0.49%) also rose, up 1 basis points to 0.817%, while those on 30-year bonds (UST30Y 4.27, +0.03, +0.64%) slumped 3 basis points to 4.275%. Bond prices move inversely to their yields. A basis point is one-hundredth of a percentage point. U.S. stocks have also been on an uptrend in this holiday-shortened week, rising ahead of Friday's key jobs report. The Dow Jones Industrial Average (DJIA 10,260, +10.13, +0.10%) was up 21 points in recent action. According to Action Economics analysts, Treasurys supply is also coming back as a factor, with an announcement today of new 3-year notes and reopened 10-year and 30-year bonds. "While the advent of more issuance has added slightly to the pressure on the bond market this morning, selling has been contained as the risk is the debt managers continue to reduce the size of the auctions," the analysts said. Also adding to pressure on bonds, the Institute for Supply Management said its non-manufacturing index was unchanged at 55.4% in May. Economists surveyed by MarketWatch were looking for the index to slide to 55.2% in May.

Source