* Employers expected to have added 190,000 jobs in February * Weekly jobless claims rise 6,000 * Market focuses on Friday's jobs report By Tariro Mzezewa NEW YORK, March 3 (Reuters) - U.S. Treasury prices were mostly flat on Thursday as data showed strength in the U.S. economy and investors focused on February's employment report due on Friday for further signs of economic momentum.
The number of Americans filing for unemployment benefits unexpectedly rose last week, but the underlying trend continued to point to a strengthening labor market. Initial claims for state jobless benefits increased 6,000 to a seasonally adjusted 278,000 for the week ended Feb. 27, above the 271,000 forecast by economists.
"Markets are a little bit nervous about tomorrow's payroll number," said John Herrmann, director of U.S. rates strategy at MUFG in New York. "The market is too pessimistic. The number could be really good and if it is people will realize the Fed may raise (rates) over the summer." The resilience in the labor market was supported by another report on Thursday showing announced layoffs by U.S. companies tumbled 18 percent in February. The signs of sustained labor market strength were the latest indication the economy is regaining momentum after slowing in the fourth quarter.
"The labor market has been holding up well and has been one of the stronger points in the last few months as other points have weakened," said Matthias Rusinski, U.S. rates strategist at UBS in New York. "The focus has shifted from the labor market to inflation." A combination of the strengthening data, rising inflation and calming financial markets could drive the Federal Reserve to raise interest rates this year, analysts said.
Friday's employment report is expected to show that employers added 190,000 jobs in February, according to the median estimate of 10 economists polled by Reuters.
The Federal Open Market Committee, the Fed's policy-setting group, will meet March 15-16.
U.S. federal funds futures imply traders see only a 3 percent chance of the Fed raising rates at the upcoming meeting, according to Reuters' FedWatch program.
Benchmark 10-year Treasury notes were last down 1/32 in price to yield 1.852 percent, little changed on the day.
The 30-year bond was last up 2/32 in price to yield 2.685 percent, slightly down from 2.692 percent late Wednesday.
(Reporting by Tariro Mzezewa; Editing by Dan Grebler)