BANKING & FINANCE - Feb. 24, 1994

Treasury Note Yields Rise in Auction: Amid fears of further Federal Reserve Board interest rate increases, investors shunned the government’s auction of new two-year notes Wednesday and, in response, traders sent yields of Treasury securities sharply higher. Yields on the two-year notes rose to the highest level in 14 months. The high yield was 4.66%, up from 4.11% at the last auction Jan. 25. It was the highest rate since two-year notes sold for 4.71% on Dec. 22, 1992. The notes will carry a coupon interest rate of 4.625%, with each $10,000 in face value selling for $9,993.40. A total of $17 billion in notes were sold.