Treasury Sells 10-Year Notes at Record Low Yield on Refuge Bid
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The Treasury sold $21 billion of 10-year notes at a record low yield amid speculation France may lose its top credit rating as Europe’s debt crisis bolstered the refuge appeal of U.S. government securities.
The bonds drew a yield of 1.90 percent, compared with a forecast of 1.928 percent in a Bloomberg News survey of nine of the Federal Reserve’s 21 primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of debt offered, was 3.29, versus an average of 3.11 for the past 10 auctions. It was the second of three note and bond auctions totaling $66 billion this week.