NEW YORK, July 2 (Reuters) - Benchmark 10-year Treasury yields dipped Tuesday ahead of a closely-watched reading of the jobs market and an expected speech by Federal Reserve Chair Jerome Powell.

Yields rose Monday to their highest levels since May as investors priced in the increasing possibility that former President Donald Trump will prevail in the November presidential elections. Trump, who was widely seen as winning last week's debate against President Joe Biden, was further bolstered Monday when the U.S. Supreme Court ruled that he has broad immunity from prosecution, making it improbable that he will be tried before the election on charges brought by Special Counsel Jack Smith.

"The price action has its grounding in forward inflation and issuance expectations in the event of a Trump victory in November, as well as the perceived increase in the probability of such an outcome," said Ian Lyngen, Head of U.S. Rates Strategy at BMO Capital Markets.

The yield on the benchmark U.S. 10-year Treasury note fell 4.7 basis points to 4.432%. The yield on the 30-year bond fell 4.2 basis points to 4.601%.

The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, fell 3.9 basis points to 4.733%.

A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at a negative 30.3 basis points, leaving it near its least-inverted position since May. (Reporting by David Randall; Editing by Chizu Nomiyama)