Treasury Sells 5-Year Notes at 7.05% Yield
WASHINGTON - The Treasury yesterday sold $9.29 billion of five-year notes at an average yield of 7.05%, down from the 7.37% incurred in the previous sale on August 28 and the lowest since the 6.73% incurred in the auction on Feb. 25, 1987.
The coupon rate was 7%, down from 7 1/4% at the previous auction. The average price was 99.792.
The Treasury received $29.79 billion in bids and accepted those in a range of 7.04% to 7.05%, including $737 million of noncompetitive bids at the average return. The Treasury accepted 63% of the bids at the highest return.
The Treasury sold an additional $565 million to Federal Reserve banks as agents of foreign and international monetary authorities and $200 million more to government accounts and Federal Reserve banks for their own accounts in exchange for maturing securities. The additional notes were sold at the average price.
The notes will mature Sept. 30, 1996.
PHOTO : Average Auction Rates