WASHINGTON, Dec. 19 (UPI) -- U.S. Treasury notes were mixed Wednesday after the U.S. Federal Reserve said it lent $20 billion to banks to make sure they can keep lending to customers.
The two-year note dropped 1/32 in price and the yield rose to 3.179 percent. The 10-year note added 5/32 for a 4.101 percent yield.
Monday's auction -- the first of two scheduled this month -- will have a 4.65 percent interest rate, the Fed said.
That is less than the 4.75 percent the Fed charges banks for emergency loans through its "discount" window and less than the rate for one-month lending between banks, set at 4.93188 percent Wednesday.
But it was higher than many economists had expected, with the bidding floor set at 4.17 percent, The Wall Street Journal reported.
The Fed said it received bids from banks for $61.6 billion worth of loans, which analysts said indicated the Fed had been successful encouraging banks to use the new auction facility.
The central bank holds its next auction, of $20 billion in 35-day notes, Thursday.
