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Treasurys came off earlier lows and were mostly flat Tuesday afternoon as optimistic investors prepared for monthly jobs data that is expected to show robust growth in the labor market.

What prices are doing: The benchmark 10-year note edged up slightly to 98-1/32, driving the yield down to 3.86% from 3.87% late Monday. Bond prices and yields move in opposite directions.

The 30-year bond rose 25/32 to 98 with a yield of 4.75%. The 5-year note edged up to 99-6/32 with a yield of 2.60%. The 2-year note fell to 99-9/32 with a yield of 1.07%.

What’s moving the market: Treasury prices were lower earlier on hopes of a positive jobs report.

The Labor Department will release the March jobs data Friday. Economists expect employers added 190,000 jobs to payrolls during the month and that the unemployment rate will hold steady at 9.7%.

Treasurys, which are perceived to be safe haven investment, tend to fall on strong economic data.

Meanwhile, the Conference Board reported that the consumer confidence index rebounded in March, after falling sharply during the previous month, which also pressured Treasurys.

What analysts are saying: "Yields are moving higher in anticipation of good employment data," said Peter Cardillo, chief market strategist at Avalon Partners. "If we see job growth above 100,000, and a downtick in total unemployment, that will put pressure on Treasurys and yields will respond to the upside."

He added that the 10-year yield could push beyond 4%, a key psychological level, on Friday’s data.

"Consumer confidence also took a big leap today, and that number is negative for the bond market," Cardillo said.  

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