The yield curve benefited in turn from strong foreign demand for intermediate Treasury maturities.

"And once again investors rushed to lock in declining yields, which led many of them to the longer Treasury maturities."

The notes are priced to yield 10.25 percent, or about one percentage point more than similar Treasury maturities.

The Treasury maturities involved in the refunding also drew interest.

The yield is roughly 1.47 percentage points more than comparable Treasury maturities.

Among the shorter Treasury maturities, discount rates on bills were slightly higher.

Late profit taking cut prices of all but the longest-term Treasury maturities yesterday.

The employment data also prompted some retail buying of intermediate Treasury maturities, he continued.

As is often the case, the rise in short-term rates rippled out to the long end of Treasury maturities.

"Much of this cash is moving into all Treasury maturities, which accounts for the relatively flat yield curve," she said.