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AA+ U.S. Treasury sees strong demand at debt sale

Photo: The Treasury building in Washington, DC. Credit: Jacquelyn Martin / Associated Press The U.S. Treasury had no trouble attracting investors to its auction of $32 billion in three-year notes on Tuesday -- the first bond sale since Standard & Poor’s cut the nation’s credit rating to AA+ from AAA on Friday.

The Treasury sold the notes at an annualized yield of 0.50%, slightly below analysts’ expectations.

Market yields on Treasury bonds were up modestly across the board Tuesday, after diving on Monday as investors rushed for havens amid the stock market’s plunge.

The 30-year T-bond was at 3.67%, up from 3.66% on Monday.

But yields were down from their highs earlier in the session, as investors await the Federal Reserve’s statement after its meeting. The statement is due around 11:15 a.m. PDT.

The Treasury will sell $24 billion in 10-year notes Wednesday and $16 billion in 30-year bonds Thursday.

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-- Tom Petruno

Photo: The Treasury building in Washington, DC. Credit: Jacquelyn Martin / Associated Press

 
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