Last week, the yield on 10-year U.S. Treasury notes
, the benchmark for U.S.
Prices of 10-year Japanese government bonds and bond futures fell Monday morning, reflecting Tokyo shares' sharp rebound in the morning and U.S. Treasury note
prices' declines on Friday.
The interest rate is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes
with ten-year maturities.
Brusuelas also pointed out that 10-year U.S. Treasury notes
are now yielding negative 0.2% on an inflation-adjusted basis.
The New Notes will have an interest rate of 3.900%, a yield of 3.916% and the New Issue Price of $998.74, which has been determined by reference to the bid-side yield on the 2.625% U.S. Treasury Notes
due February 15, 2029, as of 11:00 a.m.
The difference between two-year and ten-year U.S. Treasury notes
is roughly 0.3 percentage points.
The issue was priced at 99.758 to yield 0.957 percent, 12.5 basis points more than the yield on three-year U.S. Treasury Notes
The issue, CUSIP number 3137EADK2, was priced at 99.573 to yield 1.314%, or 30 basis points more than seven-year U.S. Treasury Notes
. The issue will settle on Monday, July 30, 2012.
A risk aversion trend grew, with investors shifting funds into U.S. Treasury notes
, considered safe investment in times of economic uncertainties, they said.