March 26 (Bloomberg) -- Treasuries pared their first losses in five days after Federal Reserve Chairman Ben S. Bernanke said continued accommodative monetary policy will be needed to make further progress reducing unemployment. U.S. 10-year notes headed for their biggest monthly drop in more than a year as the Treasury prepared to sell $35 billion of two-year notes tomorrow, the same amount of five-year debt the next day and $29 billion of seven-year securities on March 29. German business confidence unexpectedly rose to an eight-month high, an Ifo institute report showed.