BY BLOOMBERG Treasuries erased losses as 10-year note yields at almost the highest level in 11 months bolstered demand at a U.S. auction of $21 billion of the securities. The notes drew a yield of 2.029%, compared with a forecast of 2.057% in a Bloomberg News survey of eight of the Federal Reserve's 21 primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 3.19, vs. an