U.S. government bonds fell a second day Friday as $7 billion in corporate debt sales sapped demand for Treasuries.

"Nobody is going to rush out to buy Treasury bonds," said Jim Snyder, who is adding mortgage-backed and corporate bonds to the $4.8 billion he invests for American Express Asset Management in Minneapolis. Treasuries "aren't any great value right now, when most corporate and mortgage-backed securities" offer far better yields, he said.

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