October 5, 2016 / 1:17 PM / a year ago

TREASURIES-Yields rise as Friday's jobs data in focus

* Friday's payrolls report for Sept. in focus
    * ADP jobs data weaker than expected

    By Karen Brettell
    NEW YORK, Oct 5 (Reuters) - U.S. Treasury yields rose on
Wednesday after dipping briefly on ADP's weaker-than-expected
jobs data for September, with investors focused on Friday's
highly anticipated jobs report.
    U.S. private employers added 154,000 jobs in September,
according to the ADP National Employment Report. Economists
surveyed by Reuters had forecast a gain of 166,000 jobs.
    The miss was not seen as necessarily foreshadowing weakness
in Friday's report.
    "It wasn't that much weaker. There has always been a lack of
harmony between ADP and non-farm payrolls," said Gary Pollack,
head of fixed-income trading at Deutsche Bank Private Wealth
Management in New York.
    Benchmark 10-year notes were last down 4/32 in
price to yield 1.70 percent, up from 1.68 percent late Tuesday.
    Friday's employment report is expected to show 175,000 job
gains in the month, according to the median estimate of 100
economists polled by Reuters.
    Investors will also focus on whether August's
weaker-than-expected 151,000 jobs gains will be revised upward.
    The jobs report will come before Federal Reserve Chair Janet
Yellen speaks at a Boston Fed economics conference on Oct. 14.
Her speech will be closely watched for any new signals of when
the U.S. central bank is likely to next raise interest rates.
    It may be Yellen's last chance before the Fed's November
meeting to indicate if a hike is likely that month.
    Traders are pricing in a 13 percent chance that the Fed will
raise rates in November and a 63 percent chance of an increase
in December, according to the CME Group's FedWatch Tool.
    Other data due on Wednesday includes the ISM
non-manufacturing Index for September.

 (Editing by Jeffrey Benkoe)

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