WASHINGTON -- The Treasury yesterday sold $17.3 billion of two-year notes at a yield of 6.17%, up from the 6.04% yield incurred in the previous auction on June 21 and the highest since the 6.46% incurred on Aug. 27, 1991.
The coupon rate was 61/8%, up from 6% in the previous auction. The price was 99.917. In the Dutch auction, all competitive tenders at yields below 6. 17% were accepted in full. Buyers who bid at the high yield of 6.17% were allotted 87% of their total bids. The median yield was 6.16%, and the low yield was 6.10%.
Tenders totaled $46.31 billion and the Treasury accepted $17.3 billion, including $1.64 billion of noncompetitive bids.
Federal Reserve banks bought $1.15 billion of the securities, as agents for foreign and international monetary authorities, in exchange for maturing securities. The Fed banks also bought $827 million for their own account in exchange for maturing securities.
The notes will mature July 31, 1996.