"If The Fool persists in his Folly he will become wise." - William Blake
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Bond market drama builds around US auction that could bring highest yield in 7 years
The U.S. government auctions $26 billion new 10-year Treasury notes Wednesday, usually a routine affair, but more interesting this month because the offering is a record size and it could bring a 3 percent yield at auction for the first time in 7 years. Investors sold the 10-year note Tuesday, ahead of the auction, driving the yields higher and making it potentially more attractive to buyers at the 1 p.m. ET auction of $26 billion notes. The 10-year is a key benchmark and it impacts interest rates on mortgages and a range of consumer and business loans. It was yielding 2.976 percent Tuesday afternoon. Faced with $22 ... (full story)