Summary Box: Treasury borrows at record low rate

AP News
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Posted: Oct 26, 2010 3:11 PM
Summary Box: Treasury borrows at record low rate

RECORD LOWS: The Treasury sold $35 billion in two-year notes at 0.40 percent, a record low yield for an auction of those notes. Foreign banks and investors placed bids for 3.43 times the amount offered.

BETTING ON THE FED: Treasury yields have sunk to historic lows as traders expect the Federal Reserve will launch a new round of bond buying after its meeting Nov. 3. The government benefits by borrowing at the cheapest rates on record.

NEXT UP: The Treasury will auction $35 billion in five-year notes on Wednesday. Four auctions should raise a total of $109 billion this week.