WASHINGTON - The Treasury sold $12.01 billion of 10-year notes yesterday at an average yield of 7.36%, up from 5.92% in the previous sale on Feb. 9 and the highest since the 7.53% yield incurred in the auction on May 6, 1992.
The coupon rate was 7 1/4%, up from 5 7/8% in the previous auction. The average price was 99.230.
The Treasury received $22.59 billion in bids for the notes and accepted those in a range of 7.33% to 7.40%, including $644 million of noncompetitive bids at the average return. The Treasury accepted 21% of the bids at the highest return.
The Treasury sold an additional $600 million to Federal Reserve banks as agents of foreign and international monetary authorities and $1.81 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 May 15, 2004.