AP News

Treasury sells 3-year notes to blockbuster demand

NEW YORK (AP) — The Treasury Department raised $32 billion Tuesday in a sale of three-year notes that was met with blockbuster demand.

For every $1 that was offered, buyers placed $3.94 in bids, the highest demand for the notes recorded, according to research from Nomura Securities.

The notes fetched a yield of 0.337 percent.

A Nomura research note said it was a sign that traders expect the Fed to extend its guidance for low interest rates into late 2015. Previously, the Fed said it would keep those rates near zero through late 2014.

The monetary policymaking body of the Federal Reserve meets on Wednesday and Thursday.

The price of 10-year Treasury notes fell 40.6 cents Tuesday for every $100 invested. The yield was 1.70 percent, up from 1.66 percent late Monday.

In other trading, the price of the 30-year bond fell 87.5 cents for every $100 invested. The yield rose to 2.85 percent, from 2.81 percent late Monday.

The yield on the five-year Treasury note rose to 0.67 percent from 0.65 percent. The yield on the two-year note rose to 0.26 percent from 0.25 percent. The yield on three-month T-bill was unchanged at 0.10 percent.

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