WASHINGTON -- The Treasury yesterday sold $17.29 billion of two-year notes at a yield of 7.57%, up from the 7.30% yield incurred in the previous auction on Nov. 21 and the highest since the 7.84% incurred in the auction of October 30, 1990.
The coupon rate was 7 1/2%, up from 7 1/4% in the previous auction. The price was 99.873.
In the Dutch auction, all competitive tenders at yields below 7.57% were accepted in full. Buyers who bid at the high yield of 7.57% were allotted 41% of their total bids. The median yield was 7.55%, and the low yield was 7.53%.
Tenders totaled $49.37 billion and the Treasury accepted $17.29 billion, including $2.38 billion of noncompetitive bids.
Federal Reserve banks bought $760 million of the securities, as agents for foreign and international monetary authorities, in exchange for maturing securities. The Fed banks also bought $1.25 billion for their own account in exchange for maturing securities.
The notes will mature Dec. 31, 1996.