WASHINGTON -- The Treasury yesterday sold $16 billion of two-year notes at a yield of 4.26%, up from the 4.16% yield incurred in the previous auction on June 22 and the highest since the 4.28% yield incurred at the Jan. 26 auction.

The coupon rate was 4 1/4%, up from 4 1/8% in the previous auction. The price was 99.981.

In the Dutch auction, all competitive tenders at yields below 4.26% were accepted in full. Buyers who bid at the high yield of 4.26% were allotted 79% of their total bids. The median yield was 4.23%, and the low yield was 4.20%.

Tenders totaled $35.99 billion and the Treasury accepted $16 billion, including $883 million of noncompetitive bids.

Federal Reserve banks bought $750 million of the securities, as agents for foreign and international monetary authorities, in exchange for maturing securities. The Fed banks also bought $412 million for their own account in exchange for maturing securities.

The notes will mature July 31, 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.