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Two-year Treasury notes fell for an eighth day, pushing yields to within 2 basis points

of a two- month high, before the U.S. sells a record $30 billion of the securities. The

Treasury is also scheduled to sell $19 billion of five-year notes tomorrow, the most

since 2003. The two-year note yield rose 2 basis points to 2.22 percent as of 7:22 a.m.

in New York, according to bond broker BGCantor Market Data. The price of the 1 3/4

percent security due in March 2010 fell 1/32, or 31 cents per $1,000 face amount, to

99 4/32. The last time the notes declined for eight straight days was in the period

ended Feb. 2, 2006. The two-year yield was 3 basis points less than the Fed's target

rate for overnight loans between banks, the closest since July 2006. It may rise to 2.40

percent in six months, Rieger forecast. The yield on the 10-year note was little

changed at 3.69 percent. Investors bid for 2.44 times the amount of debt on offer at the

last of the monthly two-year sales on March 26, the most since October.

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