WASHINGTON - The Treasury yesterday sold $16.02 billion of two-year notes at a yield of 3.94%, unchanged from the previous auction on August 24.

The coupon rate was 3 7/8%, which was also unchanged. The price was 99.876.

In the Dutch auction, all competitive tenders at yields below 3.94% were accepted in full. Buyers who bid at the high yield of 3.94% were allotted 54% of their total bids. The median yield was 3.91%, and the low yield was 3.9%.

Tenders totaled $42.90 billion and the Treasury accepted $16.02 billion, including $819 million of noncompetitive bids.

Federal Reserve banks bought $900 million of the securities, as agents for foreign and international monetary authorities, in exchange for maturing securities. The Fed banks also bought $961 million for their own account in exchange for maturing securities.

The notes will mature September 30, 1995.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.