Yields on Treasury Notes Fall

Yields on 10-year Treasury notes fell in Wednesday’s auction to the lowest level in a year as the government completed the second of three major debt auctions this week.

The average yield was 8.21%, down from 8.88% at the last quarterly auction on Nov. 4.

It was the lowest rate since 10-year notes averaged 7.25% on Feb. 4, 1987. The notes will carry a coupon rate of 8.125%, with each $10,000 in face value selling for $9,942.70.

A total of $9 billion in notes were sold in the second auction this week aimed at raising $27 billion to finance the $2.4-trillion national debt. The last auction on Thursday will sell $8.75 billion in 30-year bonds.