Treasury Notes Hit 6-Month High

Yields on three-year Treasury notes rose in Tuesday’s auction to the highest level in six months as the government began its $36-billion quarterly refunding.

The average yield was 5.96%, up from 5.54% at the last auction on Feb. 11. It was the highest rate since three-year notes averaged 6% last Nov. 5.

The notes will carry a coupon interest rate of 5.875%, with each $10,000 in face value selling for $9,977.

A total of $15.1 billion in notes were sold out of bids totaling $37.6 billion.

The refunding continues today with the sale of $11 billion in 10-year notes and concludes on Thursday with an offering of $10 billion in 30-year bonds.

The auctions are held four times a year to replenish government coffers drained by huge deficits.