We report the observation of resolved Y-89 NMR lines due to Zn nearest
neighbors (nn) in YBa2(Cu1-yZny)3O6.64. Comparison of the Curie depen
dence of their frequency shifts with susceptibility data allows us to
conclude that the Zn induced local moments reside on the nn Cu orbital
s and to explain the absence of resolvable nn lines for x = 1. Analysi
s of the magnitude of the long-range spin-density oscillations monitor
ed by the Y-89 NMR width indicates that the reduction of T(c) might be
connected with magnetic effects. For x=0.64, the low T increase of th
e spin-lattice relaxation rate of Y-89 nuclei near Zn is shown to be g
overned by the local moment dynamic susceptibility.