WASHINGTON--The Treasury sold $9.75 billion of seven-year notes at an average yield of 6.01% yesterday, down from the 6.44% average incurred in the previous sale on July 8 and the lowest since the Treasury began selling seven-year notes regularly in 1978.
The coupon rate was 6%, down from 7% in the previous auction. The average price was 99.944.
The Treasury received $19.58 billion in bids for the notes and accepted those in a range of 5.99% to 6.05%, including $324 million of noncompetitive bids at the average return. The Treasury accepted 20% of the bids at the highest return.
The Treasury sold an additional $473 million to Federal Reserve banks as agents of foreign and international monetary authorities and $97 million more from government accounts and Fed banks for their own accounts in exchange for maturing securities. The additional notes were sold at the average price.
The notes will mature Oct. 15, 1999.