Treasury sells two-year notes at 6.88% rate.

WASHINGTON The Treasury yesterday sold $17.22 billion of twoyear notes at a yield of 6.88%, up from the 6.55% yield incurred in the previous auction on Sept. 27 and the highest since the 6.94% incurred on July 31, 1991.

The Treasury classified yesterday's issue as a reopening of the 6 7/8% five year notes originally issued Oct. 31, 1991. The price was 99.991.

In the Dutch auction, all competitive tenders at yields below 6.88% were accepted in full,

Buyers who bid at the high yield of 6.88% were allotted 10% of their total bids. The median yield was 6.85%, and the low yield was 6.80%.

Tenders totaled $41.59 billion and the Treasury accepted $17.22 billion, including $1.29 billion of noncompetitive bids.

Federal Reserve banks bought $1.08 billion of the secttrifles, as agents for feign and international monetary authorities, in exchange for maturing secuffties. The Fed banks also bought $450 million for their own account in exchange for maturing securities.

The notes will mature Oct, 31, 1996.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER