WASHINGTON -- The Treasury yesterday sold $12.05 billion of 10-year noteds at a yield of 7.96%, up form the 7.33% yield incurred in the previous auction on Aug. 10 and the highest since the 8.07% incurred in the auction on May 8, 1991.
The coupon rate was 7M\,%, up from 7Z\v% in the previous auction. The average price was 99.421.
The Treasury received $27.74 billion in bids for the notes and accepted those in a range of 7.95% to 7.97%. including $623 million of noncompetitive bids at the average return. The Treasury accepted 60% of the bids at the highest return.
The Treasury sold an additional $650 million to Federal Reserve banks as agents of foreign and international monetary authorities and $1.6 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 Nov. 15, 2004.