10-Year Notes Hit New Low

Yields on 10-year Treasury notes fell in Wednesday’s auction to the lowest level in the 17 years the government has been selling the securities.

The average yield was 6.33%, down from 6.93% at the last auction Nov. 10. It was the lowest rate since the start of 10-year note auctions on May 17, 1976.

The notes will carry a coupon interest rate of 6.25%, with each $10,000 in face value selling for $9,941.30.

A total of $10.76 billion in notes were sold out of bids totaling $25.49 billion.

Wednesday’s note sale was the second of three quarterly auctions scheduled this week to replenish the government’s coffers. On Tuesday, the government sold $15.65 billion in three-year notes at an average yield of 4.73%. Today it is scheduled to sell $9.25 billion in 30-year bonds.