The Treasury Department Tuesday auctioned $35 billion of two-year notes with a 1/4% coupon at a 0.273% yield, a price of 99.954218.

The bid-to-cover ratio was 3.60%

Tenders at the high yield were allotted 20.14%.

The median yield was 0.264%. The low yield was 0.207%.

Tenders totaled $125,965,419,200 and the Treasury accepted $35,000,079,200, including $171,519,200 non-competitive.

The Fed banks bought nothing for their own account in exchange for maturing securities.

The two-year notes are dated Sept. 30 and due Sept. 30, 2014.

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