TREASURIES-Bonds fall on record auction schedule, data

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Thu Feb 18, 2010 1:44pm EST

* 30-year long bonds down nearly a point

* Treasury announces record $126 bln in bond auctions

* Bonds down on firm data, looming supply (Adds quote, market direction, byline)

By Tom Ryan

NEW YORK, Feb 18 (Reuters) - U.S. Treasuries fell on Thursday after the government announced a record amount of bonds for its auctions next week and data suggested the economy's tepid recovery from the worst recession in decades remained on track.

The government said it would auction a record $126 billion in coupon debt next week, including the first sale of 30-year Treasury Inflation Protected Securities.

Though the supply figures were in line with expectations, they weighed on the market as traders sought to push down prices to attractive levels for the auctions.

Separate reports earlier in the session showed unexpectedly strong producer price inflation nationwide, robust manufacturing conditions in the Mid-Atlantic region and the 10th month of gains for a gauge of the economy's future prospects. For details see [ID:nN18186639]

"Today, in large part, has been data and supply," said Beth Malloy, bond market analyst at Briefing.com in Chicago.

The 30-year long bond US30YT=RR was down nearly a point in price, last trading 27/32 lower on the day, yielding 4.75 percent. The long bond was briefly down a point.

The benchmark 10-year Treasury note US10YT=RR was last down 16/32 in price, yielding 3.80 percent, up from Wednesday's closing yield of 3.73 percent. (Additonal reporting by Burton Frierson; Editing by Leslie Adler)

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