WASHINGTON -- The Treasury sold $11.03 billion of 10-year notes yesterday at an average yield of 5.78%, down from 5.96% in the previous sale on May 12 and the lowest since the Treasury began 10-year note auctions in May 1976.
The coupon rate was 5 3/4%, down from 6 1/4% in the previous auction. The average price was 99.774.
The Treasury received $34.7 billion in bids for the notes and accepted those in a range of 5.77% to 5.78%, including $482 million of noncompetitive bids at the average return. The Treasury accepted 55% 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 $1.1 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.