* Weak jobs report shows nonfarm payrolls decreased by

92,000

* Yields fall as Fed rate cut expectations grow

By Chuck Mikolajczak

NEW YORK, March 6 (Reuters) - U.S. Treasury yields were

lower on Friday, dropping sharply after a government payrolls

report fell well short of expectations and boosted views that

the Federal Reserve may need to cut interest rates at a quicker

pace.

The Labor Department said nonfarm payrolls decreased by 92,000

jobs last month, well short of the forecast of economists polled

by Reuters that called for jobs to increase by 59,000, after a

downwardly revised 126,000 increase in January.

The yield on the benchmark U.S. 10-year Treasury note

fell 0.6 basis points to 4.14% after hitting a

three-week high of 4.179%.

The two-year U.S. Treasury yield, which

typically moves in step with interest rate expectations for the

Fed, fell 1.6 basis points to 3.583%.

Expectations for a cut of at least 25 basis points from the Fed

at its June meeting increased after the jobs report.