TREASURIES-US yields drop after unexpected decline in private sector jobs

NEW YORK, Dec 3 (Reuters) - U.S. Treasury yields fell after data showed a surprise decrease in private sector payrolls in November, adding to worries about labor market weakness and cementing expectations of a rate cut by the Federal Reserve next month.

The benchmark 10-year yield slid 3.4 basis points (bps) to 4.0536% US10YT=RR, from 4.0633% before the data's release.

The two-year yield, which reflects interest rate moves by the Fed, extended its fall to 4.473% US2YT=RR.