By Laura Mandaro & Nick Godt, MarketWatch SAN FRANCISCO (MarketWatch) -- Treasurys gave back some of their prior-day gains on Wednesday, sending yields slightly higher, as investors tried to look past global concerns about banks and growth ahead of some key U.S. economic reports. Yields on benchmark 10-year Treasury notes (UST10Y 3.29, +0.02, +0.67%) rose 3 basis points to 3.29%, as prices fell. Investors expect two employment reports later this week - the ADP's report due Thursday and the U.S. employment report on Friday - to be strong, said Thomas di Galoma, head of U.S. fixed-income-rates trading. U.S. Treasurys tend to lure buyers when investors worry about the economic outlook or political instability. A Challenger layoffs report out Wednesday showed job-cut plans were slightly above April's four-year lows. An upturn in Wednesday's stock market is also likely driving Treasury notes lower. "Stocks are positive and you're starting to see some profit taking," said di Galoma. Yields on 2-year notes (UST2YR 0.79, +0.02, +2.60%) rose two basis points to 0.79%. Those on 30-year bonds (UST30Y 4.19, +0.01, +0.17%) rose one basis point to 4.19%. Bond yields move inversely to prices, and one basis point is 1/100th of a percentage point. Treasurys held to losses after the National Association of Realtors said its pending home sales index rose 6% in April after an upwardly revised 7.1% increase in March. See Economic Report on pending home sales. On Thursday, the Treasury will announce the size of next week's auctions of three-year and 10-year notes and 30-year bonds. The S&P 500 (SPX 1,082, +11.60, +1.08%) rose 0.8% and the Dow Jones Industrial Average (DJIA 10,109, +85.33, +0.85%) rose 55 points. On Tuesday, Treasurys rose on European and Chinese growth concerns but gave back some of their gains after a stronger-than-expected round of U.S. economic reports on manufacturing and construction data.

Source