Treasury's 7-year Auction Fetches Record Low Yield

Published January 26, 2012 7:54PM (EST)

NEW YORK (AP) — Yields are touching new lows on debt issued by the U.S. government, a day after the Federal Reserve reaffirmed its commitment to low interest rates.

An auction of seven-year notes by the U.S. Treasury Thursday fetched the lowest yield ever of 1.359 percent, even though demand was tepid. There were $2.73 worth of bids for each dollar of debt sold. That was lower than the $2.87 average of the last four auctions.

The benchmark 10-year Treasury note rose 56.25 cents for every $100 invested. The higher price pushed its yield down to 1.93 percent from 1.99 percent late Wednesday.

The price of the 30-year bond rose $1.06 sending its yield to 3.09, down from 3.15 percent.


By Salon Staff

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