TREASURIES-Yields rise as stocks firm, before jobs report

* Stronger stocks reduces bond bid

* Friday's payroll report for March in focus

By Karen Brettell

NEW YORK, April 3 (Reuters) - U.S. Treasury yields rose on Tuesday as stock markets firmed and as investors looked ahead to Friday’s closely watched employment report for March.

Yields fell to two-month lows on Monday, boosted by safety buying as stocks tumbled.

Now (Frankfurt: 11N.F - news) , “I think it’s more a reversal of what we saw yesterday,” said Subadra Rajappa, head of U.S. rates strategy at Societe Generale (Swiss: 519928.SW - news) in New York.

This week’s major economic catalyst will be Friday's jobs report, which will be watched for signs of accelerating jobs gains and wage pressures.

“The concern going into this week is payrolls, if we do get another strong number I think we could start seeing some pressure, especially because of the fact that we’ve rallied so much in Treasuries,” Rajappa said.

The U.S. economy added the biggest number of jobs in more than 1-1/2 years in February, at 313,000 jobs.

Benchmark 10-year note prices fell 7/32 in price on the day to yield 2.755 percent, after falling as low as 2.717 percent on Monday, the lowest since Feb. 6.

Federal Reserve Chairman Jerome Powell is due to speak about the economic outlook at an event in Chicago on Friday.

(Editing by Chizu Nomiyama) )