By Rodrigo Campos

NEW YORK, May 27 (Reuters) - Overseas shares traded in the United States fell on Wednesday on investor concerns over a spike in the cost of borrowing that might further hinder an economic recovery.

Bond prices declined in afternoon trading, causing their yields to rise, as worries about the heavy supply of debt weighed on the market despite a well-received auction of new five-year notes. The yield on U.S. Treasuries is a key benchmark for many lending rates. For details, see [ID:nN27256403]

The broad-based equities decline included Wall Street-traded shares of Italian energy company Eni SpA (E.N: Quote, Profile, Research), Japanese electronics manufacturer Sony Corp (SNE.N: Quote, Profile, Research), and Brazilian miner Vale (VALE.N: Quote, Profile, Research), which posted losses between 2.6 and 3.8 percent.

The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) fell 1.6 percent while the U.S. benchmark S&P 500 index .SPX lost 1.9 percent.

The three regional Bank of New York Mellon ADR indexes declined, with European companies falling 1.63 percent, Asian shares down 1.65 percent and stocks from Latin America off 0.73 percent.

The European market advanced for a third straight day with the FTSEurofirst 300 index up 0.6 percent on hopes the economy was on its way to recovery. But European markets closed before the U.S. Treasury sell-off.

Overnight in Asia major markets also closed higher except in Seoul, where geopolitical risks are still a concern following North Korea's weapons tests earlier this week.

ADRs of China Mobile Ltd (CHL.N: Quote, Profile, Research) and PetroChina Co Ltd (PTR.N: Quote, Profile, Research) bucked the trend in foreign stocks, rising more than 2 percent each.