Government to sell $81 billion in debt next week By Deborah Levine, MarketWatch NEW YORK (MarketWatch) -- Treasury prices extended declines slightly on Wednesday, sending yields higher, after ADP said the private sector cut 22,000 jobs in January. Yields on 10-year notes (UST10Y 3.68, +0.04, +1.07%) rose 4 basis points to 3.69%. A basis point is 0.01% and yields move inversely to prices. Yields on 2-year notes (UST2YR 0.88, +0.03, +3.30%) increased 2 basis points to 0.87%. The ADP jobs data excludes government workers, which many analysts expect to be especially high as the government hires workers to conduct the Census. ADP's data also comes two days before the Bureau of Labor Statistics releases its more closely-followed estimate of January nonfarm payrolls, which economists surveyed by MarketWatch expect to show a 20,000 increase in payrolls, which would be the biggest improvement since 2007. See more on ADP jobs data. The jobs data Wednesday and Friday "should support the notion of stronger economic outlook," said Thomas di Galoma, head of fixed-income rates trading at Guggenheim Partners. Treasury prices remained under slight pressure on Wednesday, sending yields higher, after ISM's index on the state of the services sector rose to 50.5 in January from 49.8 in December, crossing the threshold to indicate expansion in the sector. See more on ISM. Auction re-jiggering Also, the Treasury Department said it will sell $81 billion in debt next week. It will auction $40 billion in 3-year notes (UST3YR 1.40, +0.02, +1.30%) on Tuesday, $25 billion in 10-year notes (UST10Y 3.68, +0.04, +1.07%) on Wednesday and $16 billion in 30-year bonds (UST30Y 4.59, +0.04, +0.81%) on Thursday . The amounts are the same as at the last refunding, as many analysts expected. See more on Treasury auctions. "Treasury anticipates that nominal coupon auction sizes will stabilize at current levels," the department said in a statement. However, sales of inflation-linked debt will be gradually expanded, as previously announced.

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