The Treasury Department yesterday auctioned $40 billion of three-year notes with a 1 3/8% coupon at a 1.404% yield, a price of 99.915148.

The bid-to-cover ratio was 3.33. Tenders at the high yield were allotted 38.42%. The median yield was 1.370%. The low yield was 1.250%.

Tenders totaled $133,223,456,200 and Treasury accepted $40,000,456,200, including $175,856,200 non-competitive.

The Federal Reserve banks also bought $4,973,253,400 for their own account in exchange for maturing securities.

Tender rates for the Treasury’s latest 91-day and 182-day discount bills were mixed, as the three-months incurred a 0.065% high rate, up from 0.060% the prior week, and the six-months incurred a 0.165% high rate, down from 0.170% the week before.

Coupon equivalents were 0.066% and 0.167%, respectively. The price for the 91s was 99.983569 and that for the 182s was 99.916583.

The median bid on the 91s was 0.050%. The low bid was 0.020%. Tenders at the high rate were allotted 94.45%. The bid-to-cover ratio was 3.82.

The median bid for the 182s was 0.150%. The low bid was 0.110%. Tenders at the high rate were allotted 70.43%. The bid-to-cover ratio was 3.62.

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