WASHINGTON -- The Treasury yesterday sold $17.01 billion of two-year notes at a yield of 6.04%, up from the 5.94% yield incurred in the previous auction on May 24 and the highest since the 6.14% incurred on Sept. 24, 1991.
The coupon rate was 6%, up from 5 7/8% in the previous auction. The price was 99.926.
In the Dutch auction, all competitive tenders at yields below 6.04% were accepted in full. Buyers who bid at the high yield of 6.04% were allotted 43% of their total bids. The median yield was 6.01%, and the low yield was 5.97%.
Tenders totaled $44.87 billion and the Treasury accepted $17.01 billion, including $1.44 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 $1.65 billion for their own account in exchange for maturing securities.
The notes will mature June 30, 1996.