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30-Year Bond Yields Hit New Low

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<i> Associated Press</i>

Yields on 30-year Treasury bonds fell in Thursday’s auction to the lowest level on record.

The average yield was 7.29%, down from 8.00% at the last auction on May 7. It was the lowest rate since the start of regular auctions of 30-year bonds in 1977.

The bonds will carry a coupon interest rate of 7.25%, with each $10,000 in face value selling for $9,951.40.

A total of $10 billion in bonds were sold out of bids totaling $25 billion.

“It was probably the best-received auction of the three legs of the refunding,” said Kevin Flanagan, economist at Dean Witter Reynolds Inc.

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Thursday’s sale of bonds completed the government’s quarterly refunding auctions. A total of $15 billion in three-year notes were auctioned Tuesday at an average yield of 4.69%. On Wednesday, $11 billion in 10-year notes were sold at an average yield of 6.49%.

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