TREASURIES-Yields fall as buyers step in, tepid demand for 20-year auction - NewsBreak

(Recasts with yield fall, adds auction results, adds quote, updates prices) By Karen Brettell NEW YORK, Nov 17 (Reuters) - U.S. Treasuries rallied on Wednesday as the recent backup in yields reached levels that drew buyers back to the securities, and after the Treasury sold 20-year bonds to tepid but not terrible demand. Benchmark 10-year yields reached 1.65%, the highest since Oct. 26, before reversing and falling back to 1.61%. They have increased from a low of 1.42% last week, before data showed that U.S. consumer prices posted their biggest gain in 31 years in October. "After the backup we've seen over the past few days an argument could be made that some technical factors are probably bringing some buying interest in," said Ben Jeffery, an interest rate strategist at BMO Capital Markets in New York. "That 20 basis point selloff is a compelling dip to buy for people looking to add a little bit of duration before the end of the year." Yields briefly spiked after the Treasury sold $2