NEW YORK – The Treasury Department sold $15 billion in 2-year floating-rate notes Wednesday at a margin of 0.045% above a 3-month Treasury bill , in its first ever sale of securities with a variable rate. The margin is the premium that the bonds will pay investors over the 3-month T-bill, which last auctioned at a yield of 0.055%. The floaters reset based on the 3-month T-bill. The offering marks the first new security sold by the Treasury in 17 years and comes as investors look for bonds that will retain value in a rising-rate environment. Bidders offered to buy 5.67 times the amount of debt sold. Indirect bidders, a group that includes foreign central banks, bought 37.8%. Direct bidders, which include domestic money managers, purchased another 8.9%. The broader bond market remained higher after the auction. Yields on 10-year notes , which move inversely to prices, fell 2 basis points to 2.715%.
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