Treasuries Erase Drop Before Auction as Yields Attract Buyers

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Treasuries erased losses as two-year note yields at three-week highs attracted buyers before the $35 billion auction of the debt.

“We’ve seen buyers stepping in at those levels,” said Kevin Flanagan, a Purchase, New York-based fixed-income strategist at Morgan Stanley Smith Barney. “I don’t think necessarily it’s the beginning where you say yields have topped out for now.”