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F E D E R A L R E S E R V E BANK
O F N EW YO R K
Fiscal Agent of the United States
[circular No. 8185"!
[September 23, 1977]

RESULTS OF AUCTION OF 2-YEAR TREASURY NOTES
(Notes of Series U-1979)
To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statement was issued September 21 by the
Treasury Department:
The Department of the Treasury has accepted $3,ll+0 million of
$5,1+85 million of tenders received from the public for the 2-year
notes, Series U-1979, auctioned today. The range of accepted
competitive bids was as follows:
Lowest yield.... 6.71$"^
Highest yield....6.75$
Average yield....6.7*+$
Excepting two tenders totaling $10,000.

The interest rate on the notes will be 6-5/8$. At the 6-5/8$
rate, the above yields result in the following prices:
Low-yield price.... 99*81+3
High-yield price....99•770
Average-yield price.99*788
The $3 ,ll+0 million of accepted tenders includes $1+66 million of
noncompetitive tenders and $2,532 million of competitive tenders
(including 36% of the amount of notes bid for at the high yield) from
private investors. It also includes $ll+2 million of tenders at the
average price from Federal Reserve Banks as agents for foreign and
international monetary authorities in exchange for maturing securities.
In addition, $705 million of tenders were accepted at the average
price from Government accounts and Federal Reserve Banks for their own
account in exchange for securities maturing September 30, 1977 ($90 million)
and from Federal Reserve Banks as agents for foreign and international
monetary authorities for new cash ($615 million).




P a u l A . V olcker,

President.