Treasuries are slowly but surely regaining their bid as investors reassess the overall strength of the economy while looking to take advantage of the back up in yields over the past month. Since early April, Treasury yields have risen by 40 basis points in the two- to five-year sector and by 22 basis points on the longer end. Much of this back up in yields can be attributed to the extraordinarily high level of supply that has inundated the markets over the past month. This includes $50 billion of 2- and 5-year Treasury notes in late April, and $21 billion of 10- and 30-year notes and bonds over the past two days. With the completion of the Treasury’s 30-year auction yesterday, supply concerns are dissipating and the dealer community and large accounts are capitalizing . . .