TREASURIES-Shorter-dated U.S. yields fall as wage gain disappoints

NEW YORK, July 7 (Reuters) - Yields on shorter-dated Treasury debt turned lower on Friday, erasing their initial rise, as wage growth fell short of forecast in June, offering a respite from a global bond market selloff on worries about reduced stimulus from overseas central banks.

The two-year Treasury yield, which is sensitive to traders' view on Federal Reserve policy, fell to a session low of 1.383 percent shortly following the release of the latest jobs report. At 9:06 a.m. EDT (1306 GMT), it was 1.399 percent, down nearly 1 basis point and held below an eight-plus year peak of 1.435 percent set on Thursday. (Reporting by Richard Leong; Editing by Jeffrey Benkoe)