$40.85 bln bids submitted at $75 bln TSLF auction

NEW YORK, Sept 11 (Reuters) - Primary dealers submitted $40.85 billion of bids for the $75 billion of Treasuries offered on Thursday in the Federal Reserve's 28-day Term Securities Lending Facility auction.

The bid-to-cover ratio, an indication of demand, was 0.54, compared with 0.52 in a similar auction on Aug. 14.

Dealers can lend out the Treasuries in exchange for short-term cash loans in the U.S. repurchase market, to help shore up balance sheets depleted by the credit crisis. (Reporting by Richard Leong; Editing by James Dalgleish)

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