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Buffett Locks In Interest Rates Amid Rising Yields

Warren Buffett’s Berkshire Hathaway Inc. sold $1.5 billion of mostly fixed-rate debt to retire floating-rate notes at a time when government bond yields are rising and the U.S. is showing signs of economic improvement.

A unit of Buffett’s Omaha, Nebraska-based holding company issued $750 million of 4.25 percent, 10-year notes yesterday priced to yield 95 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. It also sold $375 million of 3-year, 1.5 percent notes and the same amount of floating-rate debt yielding 33 basis points more than the 3-month London interbank offered rate, the data show.