NEW YORK – The Treasury Department sold $13 billion in 2-year floating-rate notes Wednesday at a at a margin of 0.064% above a 3-month Treasury bill , in its second-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. The floaters reset based on the 3-month T-bill. Bidders offered to buy 5.29 times the amount of debt sold, compared to 5.67 times at the first sale. Indirect bidders, a group that includes foreign central banks, bought 39.6%, versus 37.8% in the last sale. Direct bidders, which include domestic money managers, purchased another 5.7%, versus 8.9% in the last sale. The broader bond market remained slightly higher after the auction. Yields on 10-year notes , which move inversely to prices, fell slightly to 2.700%.
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