WASHINGTON - The Treasury sold $12.07 billion of 10-year notes yesterday at an average yield of 5.69%, down from 5.78% in the previous sale on Aug. 11 and the lowest since the Treasury began 10-year note auctions in May 17, 1976.
The sale was a reopening of the 10-year note auction in August, so the coupon rate was unchanged at 5 3/4%. The average price was 100.424.
The Treasury received $27.54 billion in bids for the notes and accepted those in a range of 5.68% to 5.69%, including $449 million of noncompetitive bids at the average return. The Treasury accepted 97% of the bids at the highest return.
The Treasury sold an additional $800 million to Federal Reserve banks as agents of foreign and international monetary authorities and $3.0 billion more to government accounts and Federal Reserve banks for their own accounts in exchange for maturing securities. The additional notes were sold at the average price.
The notes will mature Aug. 15, 2003.