Treasury Sale Sets 2nd Record Low Yield on Europe Debt

The Treasury sold notes at a record-low auction yield for a second consecutive day as Europe’s debt crisis underscored the status of U.S. government debt as the preferred refuge.

The $29 billion seven-year note sale drew a yield of 1.203 percent, compared with the previous record of 1.347 percent at the April 26 auction. Yesterday’s five-year note sale also drew an all-time low yield, as the U.S. borrows at historically low costs even as marketable Treasuries exceed $10 trillion, a more-than doubling since 2007. Benchmark 10-year yields rose today as Federal Reserve Bank of New York President William Dudley said he doesn’t currently see the need for additional stimulus.