By Dakin Campbell Oct. 27 (Bloomberg) -- Treasury notes declined, led by two- year securities, as traders prepared for $64 billion in debt auctions this week. The U.S. will sell $6 billion of five-year Treasury Inflation Protected Securities today, $34 billion of two-year notes tomorrow and $24 billion of five-year debt on Oct. 30. The Federal Reserve began to buy short-term debt issued by U.S. companies in a bid to unlock lending markets. Futures show the central bank may cut the benchmark interest rate in half this week. ``Treasury investors are wary of supply,'' said Jane Caron, chief economic strategist in Burlington, Vermont, at Dwight Asset Management Co., which oversees $70 billion. ``There will be a lot of supply coming down the road, and the government is very active in intervening in the markets. As a Treasury investor you have to be cognizant of their activity.'' The yield on the two-year note climbed 8 basis points, or 0.08 percentage point, to 1.54 percent at 10:07 a.m. in New York, according to BGCantor Market Data. The price of the 2 percent security maturing in September 2010 fell 5/32, or $1.56 per $1,000 face amount, to 100 28/32. The 10-year note's yield advanced 2 basis points to 3.69 percent. To contact the reporter on this story: Dakin Campbell in New York at dcampbell27@bloomberg.net

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