WASHINGTON - The Treasury yesterday sold $10.51 billion of five-year notes at a yield of 5.54%, down from the 5.74% incurred in the previous sale on Aug. 26. and the lowest since the regular five-year auctions began in 1977.

The coupon rate was 5 1/2%, down from 5 5/8% at the previous auction. The average price was 99.827.

In the Dutch auction, all competitive tenders at yields lower than 5.54% were accepted in full. Buyers who bid at the high yield of 5.54$ were allocated 57% of their total bids. The median yield was 5.50%, and the low yield was 5.45%.

The Treasury sold an additional $1.2 billion to government and Federal Reserve banks as agents of foreign and international monetary authorities, in exchange for maturing securities. In addition, $400 million was accepted at the average price from government accounts and Federal Reserve banks for their own account, in exchange for maturing securities.

The notes will mature Sept. 30, 1997.

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