Treasury 10-year yields approached a 14-month high before data this week forecast to show employers stepped up hiring, adding to signs of economic recovery and boosting speculation the Federal Reserve will reduce stimulus.

U.S. companies added more workers last month, ADP Research Institute will say tomorrow, according to a Bloomberg survey of economists. The Labor Department will report on June 7 that nonfarm payrolls rose by 167,000 positions and the jobless rate held at a four-year low, a separate survey showed. Investors in Treasuries bet for a seventh straight week prices of the securities will fall, a JPMorgan Chase & Co. survey showed.

"The employment number will shape near-term expectations and determine the near-term path of interest rates," said Dan Mulholland, head of U.S. Treasury trading in the capital-markets unit of BNY Mellon Corp. in New York. "If we get a number over 200,000, that would lead to speculation the Fed could taper purchases as early as September. Realistically though, you need several months of that."