Bond Yield Hits 8.00%

Yields on 30-year Treasury bonds rose at auction to the highest level since November as the government concluded a $36-billion quarterly refunding.

The average yield was 8%, up from 7.91% at the auction Feb. 13. It was the highest rate since 30-year bonds also averaged 8.00% on Nov. 7, 1991. The bonds will carry a coupon interest rate of 8%, with each $10,000 in face value selling for $10,000.00.

A total of $10 billion in bonds was sold out of bids totaling $24.9 billion. The three-day refunding opened Tuesday with the sale of $15.1 billion in three-year notes and continued Wednesday with the auction of $11.1 billion in 10-year notes.

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