(CNNMoney.com) -- U.S. Treasury debt prices extended losses Wednesday after a strong report on private sector employment growth for June, which indicated that Friday's influential non-farm payrolls report could be robust.

The dollar gained against the euro and the yen.

Benchmark 10-year notes fell 8/32 to 99-15/32 for a yield of 5.19 percent, versus 5.15 percent late Monday.

The National Employment Report by Automatic Data Processing showed a gain of 368,000 private sector jobs in June, up steeply from a gain of 122,000 in May. Stronger economic data traditionally points to inflation, which eats up an investor's money in bond investments.

The 30-year bond dropped 15/32 to 88-30/32, to yield 5.23 percent, up from 5.21 percent in the previous session. Bond prices and yields move in opposite directions.

The five-year note fell 5/32 to 99-28/32, yielding 5.14 percent, while the two-year note also fell two ticks, yielding 5.20 percent.

U.S. bond markets were closed Tuesday for the U.S. Independence Day holiday.

The next economic data due out is crude inventories for June and initial unemployment claims, both of which are expected Thursday.

In currency trading, the euro bought $1.2759 down from $1.2804 Monday. The dollar traded at ¥115.03 up from ¥114.68 in the previous session.

---from Reuters and staff reports

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