Morningstar

U.S. Pays Highest Borrowing Costs for Three-Year Notes Since 2006

Provided by Dow Jones Oct 6, 2026, 5:52:00 PM

By Paulo Trevisani

The U.S. Treasury auctioned $58 billion in three-year notes Tuesday at an elevated cost.

The notes sold at a yield of 4.932%, the highest since an auction held in May 2006, which had a high yield of 4.995%.

Demand indicators were mixed. The bid-to-cover ratio was a below-average 2.62. On the other hand, the auction cleared at a slightly lower cost than the 4.934% when-issued yield at the time of the tender.

Indirect bidders, a group that includes foreign investors, acquired 57.6% of the offer, after averaging 63% in the previous 12 months.

Following the auction results, the on-the-run three-year yield traded at 4.926%, according to Tradeweb.

Write to Paulo Trevisani at paulo.trevisani@wsj.com.

(MORE TO FOLLOW) Dow Jones Newswires

October 06, 2026 13:52 ET (17:52 GMT)

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