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10-year note auction of 11 May 2016 (new issue)

The 10-year note sold $28.201 billion at a high yield of 1.710% on , with a bid-to-cover ratio of 2.68.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.710%

Median yield 1.680%

Bid-to-cover

2.68

▼ −0.07 since 13 Apr

Sold

$28.20 billion

$23 billion offered

Indirect bidders

73.5%

Of competitive bids accepted

The high yield was the lowest for a 10-year note since 12 December 2012

High yield at each 10-year note auction, %

The high yield was the lowest for a 10-year note since 12 December 201236 auctions from 12 June 2013 to 11 May 2016; the latest at 1.710%.1.5%2.0%2.5%3.0%3.5%2013201420152016This auction, 1.710%The high yield was the lowest for a 10-year note since 12 December 201236 auctions from 12 June 2013 to 11 May 2016; the latest at 1.710%.1.5%1.8%2.0%2.3%2.5%2.8%2014201520161.710%

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

The 36 auctions as a table
High yield and bid-to-cover of the last 36 10-year note auctions, newest first
AuctionHigh yield, %Bid-to-cover
1.7102.68
1.7652.75
1.8952.49
1.7302.56
2.0902.77
2.2332.64
2.3042.58
2.0662.59
2.2352.70
2.1152.40
2.2252.72
2.4612.74
2.2372.72
1.9252.62
2.1392.65
2.0002.62
1.9302.61
2.2142.97
2.3652.52
2.3812.52
2.5352.71
2.4392.83
2.5972.57
2.6482.88
2.6122.63
2.7202.76
2.7292.92
2.7952.54
3.0092.68
2.8242.61
2.7502.70
2.6572.58
2.9462.86
2.6202.45
2.6702.57
2.2092.53

Against its own history

Against the previous 12 auctions of the 10-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.682.676 of 126 of 12
High yield1.7102.17012 of 120 of 12
Indirect bidders' share73.560.20 of 1212 of 12
Direct bidders' share11.812.18 of 124 of 12
Primary dealers' share14.726.812 of 120 of 12
High minus median, basis points3.04.19 of 123 of 12

The table scrolls sideways; the first column stays in place.

  • Indirect bidders' share: Highest of all 98 earlier 10-year note auctions we hold.
  • Primary dealers' share: Lowest for a 10-year note since 11 July 2012 (45 auctions in between).

Who bought the 10-year note?

Indirect bidders took 73.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year note auction, 13 April 2016

Indirect bidders took 73.5% of the competitive bids acceptedIndirect bidders 73.5%, Direct bidders 11.8%, Primary dealers 14.7%Indirect bidders73.5%60.0%Direct bidders11.8%15.3%Primary dealers14.7%24.8%Indirect bidders took 73.5% of the competitive bids acceptedIndirect bidders 73.5%, Direct bidders 11.8%, Primary dealers 14.7%Indirect bidders73.5%60.0%Direct bidders11.8%15.3%Primary dealers14.7%24.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders73.560.0
Direct bidders11.815.3
Primary dealers14.724.8

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as10-Year, new issue
Offering amount$23,000,000,000
Bids received$66,906,187,700
Sold$28,201,483,200
Competitive bids accepted$22,968,975,500
Non-competitive bids accepted$31,051,400
Federal Reserve (SOMA) add-on$5,201,456,300
Foreign and international (FIMA) non-competitive$0
High yield, %1.710
Median rate, %1.680
Low rate, %1.600
Interest rate (coupon), %1.625
Bids at the high rate filled, %30.57
Bid-to-cover ratio2.68
Indirect bidders accepted$16,878,479,500
Direct bidders accepted$2,708,000,000
Primary dealers accepted$3,382,496,000
Indirect bidders' share, % (ours)73.5
Direct bidders' share, % (ours)11.8
Primary dealers' share, % (ours)14.7
High minus median, basis points (ours)3.0
Treasury par yield curve, 10-year point, same day, %1.73
High yield minus that point, basis points (ours)-2.0

Treasury's own files: announcement (PDF) · results (PDF)

How to read this result

The high yield is the highest rate Treasury accepted; every winning bidder gets it. The bid-to-cover ratio is bids received divided by the amount sold. Shares are of competitive bids accepted. High minus median shows how far the accepted cut-off sat above the middle accepted bid; it is not the market's auction tail, which needs a when-issued price that is not public.

The par yield curve comparison sets the high yield against Treasury's own par yield curve on the auction day, at the point nearest this security's maturity (10-year). Treasury fixes that curve from market quotes in the late afternoon, after the auction closed, so the gap mixes the auction's pricing with the afternoon's market move. It is not the auction tail either.

What this number cannot tell you

  • Why it sold where it did. Results show what was bid and accepted, not the reasons behind any bid.
  • The auction tail as markets quote it. That compares the high yield with the when-issued yield just before bids closed, a market price that is not public; we show high minus median instead, a different measure.
  • Who the bidders are. Indirect bidders include foreign and international accounts bidding through the New York Fed and investors bidding through dealers; Treasury does not publish names.
  • Demand on another day. A bid-to-cover ratio counts bids at one auction against the amount offered, and the amount offered changes from auction to auction.

The longer windows

Each measure against earlier 10-year note auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.68Last 24 auctions10 of 2414 of 242.64
Bid-to-cover ratio2.68Since 7 May 200854 of 9842 of 982.72
Bid-to-cover ratio2.68All 152 since 10 November 199962 of 15286 of 1522.62
High yield1.710Last 24 auctions24 of 240 of 242.229
High yield1.710Since 7 May 200892 of 986 of 982.628
High yield1.710All 234 since 31 October 1979228 of 2346 of 2344.352
Indirect bidders' share73.5Last 24 auctions0 of 2424 of 2458.0
Indirect bidders' share73.5All 98 since 7 May 20080 of 9898 of 9842.2
Direct bidders' share11.8Last 24 auctions15 of 249 of 2412.4
Direct bidders' share11.8All 98 since 7 May 200847 of 9851 of 9811.5
Primary dealers' share14.7Last 24 auctions24 of 240 of 2430.6
Primary dealers' share14.7All 98 since 7 May 200897 of 981 of 9842.0
High minus median, basis points3.0Last 24 auctions19 of 244 of 244.0
High minus median, basis points3.0Since 7 May 200882 of 9815 of 984.2
High minus median, basis points3.0All 234 since 31 October 1979114 of 234108 of 2343.0

The table scrolls sideways; the first column stays in place.

Sources

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

Shares of competitive bids, grades against earlier auctions and the high-minus-median spread are computed by 500metrics from Treasury's published fields; how.

Source: U.S. Treasury, Daily Treasury par yield curve rates. Observed .

How to cite this

U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 11 May 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160511_1.pdf. Compiled by 500metrics, "10-year note auction of 11 May 2016 (new issue)", https://500metrics.com/treasury/auctions/10-year-note/2016-05-11.

Sources and licence

Sources and licence

  • U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data (source). Licence: Public domain, a work of the US federal government
  • U.S. Treasury, daily par yield curve rates (source). Licence: Public domain, a work of the US federal government

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