Yields on 10-year T-bills dropped to 7.25%.

It was the lowest yield ever in the decade that the government has been selling those securities. The average yield was down from 7.47% at the last auction on May 15. The government first auctioned 10-year notes on May 17, 1976, with the first issue selling for 7.88%. The latest sale attracted bids totaling $24.7 billion, with $9.8 billion sold. The notes will carry a coupon rate of 7.25%, with a $10,000 note selling for $9,999.90. The auction was the second in a series of three auctions this week aimed at raising a record $29 billion during the government’s quarterly refunding operation.