Sept. 10 (Bloomberg) -- Treasuries rose for a second day as stocks around the world snapped a week-long rally and demand for U.S. government securities increased before today’s 30-year bond auction. The 10-year note erased earlier losses as the MSCI World Index fell 0.2 percent after Monsanto Co., the world’s largest seed-maker, said earnings per share will fall in 2010. Yesterday’s $20 billion 10-year note sale attracted bids for 2.77 times the amount on offer, compared with an average of 2.49 at the last 10 auctions. The government will sell $12 billion of 30-year bonds today. “Risk sentiment is an obvious factor for Treasuries,” said Orlando Green, a London-based fixed-income strategist at Calyon, the investment-banking arm of Credit Agricole SA. “The 30-year auction later today is a hurdle but we had a good auction last night and the market is still relieved at the back of that.” The yield on the benchmark 10-year note fell 2 basis points to 3.46 percent as of 6:50 a.m. in New York, according to BGCantor Market Data. The 3.625 percent security due in August 2019 climbed 4/32, or $1.25 cents per $1,000 face amount, to 101 13/32. Thirty-year yields dropped 1 basis point to 4.32 percent. To contact the reporter on this story: Anna Rascouet in London arascouet@bloomberg.net.

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