Sept. 27 (Bloomberg) -- Treasuries gained after the governmentâs $36 billion auction of two-year notes drew the highest level of demand since August 2007 as investors speculated the Federal Reserve will buy more government bonds. Bonds rose earlier as Anglo Irish Bank Corp.âs senior debt was cut to the lowest investment grade rating by Moodyâs Investors Service, encouraging demand for safety. The two-year notes sold today drew a yield of 0.441 percent, the lowest since the government began selling the securities on a quarterly basis in September 1974. âThere are a lot of positives for the market,â said Michael Franzese, managing director and head of Treasury trading at Wunderlich Securities Inc. in New York. âThereâs a lot of cash on the sidelines, and the economic outlook is uncertain. Itâs the perfect environment to buy fixed-income.â http://noir.bloomberg.com/apps/news?pid=20601087&sid=a.ms1oH3NErc&pos=1 0.441