Despite Low Yields, 10-Year Notes Sell Well
From Times Wire Services
WASHINGTON —
The second leg of the Treasury’s record $34.5-billion auction went better than expected Wednesday, with investors buying $11 billion of 10-year notes at the lowest yield in more than four years.
Economists said traders and investors want to lock in yields, expecting that rates will continue to fall because of the recession.
The average yield was 7.85%, down from 8.52% at the last auction Nov. 7.
It was the lowest rate since 10-year notes averaged 7.25% on Nov. 5, 1986. The notes will carry a coupon rate of 7.75%, with each $10,000 in face value selling for $9,931.60.
A total of $11 billion in notes was sold out of bids totaling $28.9 billion.
