WASHINGTON -- The Treasury yesterday sold $11.01 billion of five-year notes at a yield of 7.85%, up from the 7.81% yield incurred in the previous auction on Nov. 22 and the highest since the 7.89% incurred on July 25, 1991.

The coupon rate was 7 3/4%, unchanged from the previous auction. The price was 99.593.

In the Dutch auction, all competitive tenders at yields below 7.85% were accepted in full. Buyers who bid at the high yield of 7.85% were allotted 42% of their total bids. The median yield was 7.80%, and the low yield was 7.76%.

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Tenders totaled $24.44 billion and the Treasury accepted $11.01 billion, including $918 million of noncompetitive bids.

Federal Reserve banks bought $220 million of the securities, as agents for foreign and international monetary authorities, in exchange for maturing securities. The Fed banks also bought $1.18 billion for their own account in exchange for maturing securities.

The notes will mature Dec. 31, 1999.

Treasury Market Yields Previous Previous Thursday Week Month3-Month Bill 5.60 5.68 n.a.6-Month Bill 6.47 6.46 n.a.1-Year Bill 7.15 7.06 n.a.2-Year Note 7.70 7.50 n.a.3-Year Note 7.80 7.63 n.a.5-Year Note 7.83 7.71 n.a.7-Year Note 7.83 7.77 n.a.10-Year Note 7.82 7.79 n.a.30-Year Bond 7.85 7.86 n.a.

Source: Cantor, Fitzgerald / Telerate

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