TREASURIES-US yields dip as soft labor market data backs Fed easing

NEW YORK, Sept 4 (Reuters) - U.S. Treasury yields slipped on Thursday after data showed a weakening labor market that affirmed expectations the Federal Reserve will resume cutting interest rates at its policy meeting later this month.

U.S. private payrolls increased less than expected in August, rising by 54,000 jobs last month after a slightly upwardly revised 106,000 increase in July, the ADP National Employment Report showed. Economists polled by Reuters had forecast private employment increasing 65,000.

At the same time, data showed U.S. initial jobless claims rose 8,000 to a seasonally adjusted 237,000 for the week ended August 30. Economists polled by Reuters had forecast 230,000 claims for the latest week.

U.S. 10-year yields were last down 1.9 basis points at 4.189% US10YT=RR, while two-year yields, which are tied to monetary policy, slipped 1 bp at 3.602% US2YT=RR.