WASHINGTON -- The Treasury yesterday sold $17.32 billion of two-year notes at a yield of 7.30%, up from the 6.88% yield incurred in the previous auction on Oct. 25 and the highest since the 7.32% incurred in the auction of Dec. 26, 1990.

The coupon rate was 7 1/4%, up from 6 7/8% in the previous auction. The price was 99.908.

In the Dutch auction, all competitive tenders at yields below 7.30% were accepted in full. Buyers who bid at the high yield of 7.30% were allotted 98% of their total bids. The median yield was 7.29%, and the low yield was 7.28%.

Tenders totaled $47.32 billion and the Treasury accepted $17.32 billion, including $1.2 billion of noncompetitive bids.

Federal Reserve banks bought $1.09 billion of the securities, as agents for foreign and international monetary authorities, in exchange for maturing securities. The Fed banks also bought $265 million for their own account in exchange for maturing securities.

The notes will mature Nov. 30, 1996.

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