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Question
How do US Treasury bond auctions work?
1
The Treasury sets a fixed price and allocates bonds on a first-come, first-served basis
2
Bonds are sold via a public lottery to ensure fair distribution among all investors
3
Institutional investors submit bids stating the yield they require, and the Treasury fills the auction from the lowest yield upward
4
A panel of central bank officials sets the yield before the auction opens
Press 1–4 to pick an answer
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