TREASURIES-Bonds brace for jobs data, yields near 2-wk high

TOKYO, March 4 (Reuters) – U.S. Treasuries moved little in
Asia on Friday, with their yields stuck near two-week highs and
seen rising more if data points to a further recovery in the
U.S. jobs market later in the day.

* The yield on 10-year notes stood at 3.56 percent
(US10YT=RR: Quote, Profile, Research), little changed from late U.S. levels. It rose to
3.57 percent on Thursday, its highest in two weeks, with the
next yield resistance seen at 3.63 percent.

* T-bond futures (TYv1: Quote, Profile, Research) stood at 117-28/32, up 2.5/32 from
late U.S. levels, after marking a 3-week low around 117-25.5/32
on Thursday and still not far from a 9-month trough of 117-22/32
hit last month.

* The near-term outlook hinges on the U.S. jobs report due
at 8:30 a.m. (1330 GMT). Economists in a Reuters survey forecast
185,000 jobs were created in the month compared with 36,000 in

* But players also said market expectations might have risen
above a gain of 200,000 after strong data from a private payroll
processor on Wednesday and a fall in initial jobless claims
figures on Thursday.

* “The market is already expecting a fairly strong reading
in today’s jobs report. So unless the data is surprisingly
strong, the data is unlikely to cause a big fall in Treasuries,”
said Shinichiro Kadota, non-yen strategist at Barclays Capital.
(Reporting by Hideyuki Sano; Editing by Joseph Radford)