The U.S. government sold $34 billion worth of 4-week bills early Tuesday afternoon as part of its standard weekly offering of securities.

The government has increased the size of its the weekly offering by $10 billion compared to last year as it pumps up spending to deal with the current economic downturn.

The auction drew a yield of 0.170 percent while posting its weakest demand of the year, with the bid-to-cover ratio coming in at a level of 2.55.

The previous auction for comparable securities took place early last week, when $35 billion worth of the bills were sold.

Last week's auction drew a yield of 0.050 percent. Meanwhile, the sale drew stronger than usual demand, with the bid-to-cover ratio coming in at 3.40.

In the treasury markets today, the benchmark ten-year note has moved off of its high for the day in the late morning but remains in positive territory.

The yield on the note is currently down less than a basis point at 2.706 percent after hitting a low of 2.679 percent.

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