ECB report weighs on Treasurys, U.S. dollar ( 10_YEAR ) (by Deborah Levine)

SAN FRANCISCO (MarketWatch) -- Treasury prices turned down and the dollar reversed a gain in early U.S. trading on Wednesday, pushing yields up slightly, after a media report hinted at further evidence that the European Central Bank may be launching a new sovereign-bond purchase program at its meeting in the coming session. Bloomberg News reported the ECB plans to remove the same amount of money it spends from elsewhere in the system so the program doesn't increase the money supply. The sterilized decision is "sending the euro higher as the ECB will continue in the Bundesbank spirit of not printing money, but merely focusing on the transmission mechanism of monetary policy," said Richard Gilhooly, U.S. director of interest-rate strategy at TD Securities. Yields on 10_year notes (10_year) , which move inversely to prices, rose 1 basis point to 1.58%. The ICE dollar index (dxy) , a gauge of the U.S. unit against a basket of six major currencies, turned down to 81.249 from 81.327 in North American trade late Tuesday. The euro (eurusd) rose to $1.2587, reversing a loss and from $1.2568.