WASHINGTON - The Treasury yesterday sold $17.03 billion of two-year notes at a yield of 5.59%, up from the 5.15% yield incurred in the previous auction on March 22 and the highest since the 5.85% on March 24, 1992.
The coupon rate was 5 1/2%, up from 5 1/8% in the previous auction. The price was 99.953.
In the Dutch auction, all competitive tenders at yields below 5.59% were accepted in full. Buyers who bid at the high yield of 5.59% were allotted 92% of their total bids. The low yield was 5.50%.
Tenders totaled $45.93 billion and the Treasury accepted $17.03 billion, including $1.39 billion of noncompetitive bids.
Federal Reserve banks bought $880 million of the securities, as agents for foreign and international monetary authorities, in exchange for maturing securities. The Fed banks also bought $800 million for their own account in exchange for maturing securities.
The notes will mature April 30, 1996.
