(Adds details of ADP data, analyst comment, updates yields)

By Gertrude Chavez-Dreyfuss

NEW YORK, Dec 3 (Reuters) - U.S. Treasury yields fell on

Wednesday 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.

In early morning trading, the benchmark 10-year yield dipped

2.5 basis points (bps) to 4.063%, while the 30-year

yield slipped 1.1 bps to 4.729%.

On the front end of the curve, the two-year yield, which

reflects interest rate moves by the Fed, was down 2.8 bps at

3.488%.

Data showed that U.S. private employment

decreased by 32,000 jobs

last month after an upwardly revised 47,000 increase in

October. Economists polled by Reuters had forecast private

employment rising by 10,000 jobs after a previously reported

42,000 rebound in October.

Following the data, U.S. rate futures have priced in an 89%

chance of a 25-bp cut next month, up from 83.4% a week ago, CME

FedWatch showed.

"The third decline in four months for ADP private-sector

payrolls could lock in a Fed rate cut next week," wrote Sal

Guatieri, senior economist at BMO, in emailed comments after the

jobs report.

"The Fed won't have the BLS's (Bureau of Labor Statistics)

official November jobs report before next week's policy

decision, but the ADP report might be all that it needs for the

more dovish leaning Governors to counter some hawkish leaning

regional Presidents to push through another rate cut."

(Reporting by Gertrude Chavez-Dreyfuss;

Editing by Tomasz Janowski and Chizu Nomiyama )