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A new auction of Treasury notes was just completed yesterday. The market yield for these notes is noticeably lower than older, seasoned Treasury bonds with

A new auction of Treasury notes was just completed yesterday. The market yield for these notes is noticeably lower than older, seasoned Treasury bonds with the same maturity as the newer notes. This pervasive phenomenon in the Treasury market is most likely due to differential _________ effects within the Treasury sector.

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maturity

Federal reserve

default risk

liquidity

taxation

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