Treasury gets strong bidding for $29B in bonds

By Associated Press
Posted Oct. 28, 2010 at 1:30 p.m.

Investors are lending $29 billion to the government in the last Treasury auction this week.

The Treasury sold seven-year notes at a 1.97 percent yield, versus 1.89 percent in September’s auction. That means it was slightly more expensive for the government to borrow $29 billion from investors this month.

But the extra yield also helped stoke demand, said David Ader, head of government bond strategy at CRT Capital. Investors placed bids for 3.06 times the amount offered, a record high reading of demand for a sale of seven-year notes.

All Treasurys were trading higher. The seven-year note jumped after the auction, lowering the yield to 1.93 percent in early afternoon trading. Bond yields and prices move in opposite directions.

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