By Sandra Hernandez Oct. 23 (Bloomberg) -- Treasuries fell as stocks rose and the government said it will sell $58 billion in two- and five- year notes next week. ``The flight to quality is leaving this morning as stocks have rebounded,'' said Gary Pollack, who helps oversee $12 billion as head of fixed-income trading at Deutsche Bank AG's Private Wealth Management unit in New York. ``We've rallied quite a bit in Treasuries.'' The two-year note's yield climbed 7 basis points, or 0.07 percentage point, to 1.58 percent at 11:21 a.m. in New York, according to BGCantor Market Data. The 2 percent security due in September 2010 fell 4/32, or $1.25 per $1,000 face amount, to 100 26/32. The yield on the 10-year note increased 5 basis points to 3.64 percent. The Standard & Poor's 500 Index gained 1.5 percent. The amount of two- and five-year debt to be auctioned next week is less than forecast. Jersey City, New Jersey-based Wrightson ICAP had forecast the sale of $65 billion: $38 billion of two-year notes and $27 billion of five-year notes. The Treasury said it plans to sell $34 billion of two-year notes on Oct. 28 and $24 billion of five-year notes on Oct. 30. It will also auction $6 billion of 4 1/2 year Treasury Inflation Protected Securities on Oct. 27. To contact the reporter on this story: Sandra Hernandez in New York at shernandez4@bloomberg.net

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