An auction of $26 billion in two-year notes saw strong demand Wednesday, with indirect bidders -- a type of investor that includes foreign central banks -- taking a larger-than-normal chunk of the bonds. The yield at auction was 0.540%, compared with 0.543% in the minute before the auction. Yields move inversely to prices, rising as prices fall. The auction's bid-to-cover ratio, a measure of demand, was 3.74, versus an average of 3.40 from the last four auctions. Direct bidders, a group that includes domestic asset managers, took home 8.8% of the bonds, compared to 16%. The two-year Treasury yield moved lower after the auction. It was recently flat at 0.510%, compared with 0.515% earlier in the session.
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