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10-year note auction of 12 July 2016 (reopening)

The 10-year note sold $21.303 billion at a high yield of 1.516% on , with a bid-to-cover ratio of 2.33.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.516%

Median yield 1.470%

Bid-to-cover

2.33

▼ −0.37 since 8 Jun

Sold

$21.30 billion

$20 billion offered

Indirect bidders

54.3%

Of competitive bids accepted

The high yield was the lowest for a 10-year note since 11 July 2012

High yield at each 10-year note auction, %

The high yield was the lowest for a 10-year note since 11 July 201236 auctions from 7 August 2013 to 12 July 2016; the latest at 1.516%.1.5%2.0%2.5%3.0%3.5%2013201420152016This auction, 1.516%The high yield was the lowest for a 10-year note since 11 July 201236 auctions from 7 August 2013 to 12 July 2016; the latest at 1.516%.1.5%2.0%2.5%3.0%2014201520161.516%

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
1.5162.33
1.7022.70
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

Against its own history

Against the previous 12 auctions of the 10-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.332.6612 of 120 of 12
High yield1.5162.07812 of 120 of 12
Indirect bidders' share54.361.212 of 120 of 12
Direct bidders' share7.911.910 of 122 of 12
Primary dealers' share37.725.60 of 1212 of 12
High minus median, basis points4.64.23 of 128 of 12

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

  • Bid-to-cover ratio: Lowest for a 10-year note since 11 March 2009 (87 auctions in between).
  • Indirect bidders' share: Lowest for a 10-year note since 13 January 2015 (17 auctions in between).
  • Primary dealers' share: Highest for a 10-year note since 13 January 2015 (17 auctions in between).

Who bought the 10-year note?

Indirect bidders took 54.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year note auction, 8 June 2016

Indirect bidders took 54.3% of the competitive bids acceptedIndirect bidders 54.3%, Direct bidders 7.9%, Primary dealers 37.7%Indirect bidders54.3%73.6%Direct bidders7.9%7.2%Primary dealers37.7%19.2%Indirect bidders took 54.3% of the competitive bids acceptedIndirect bidders 54.3%, Direct bidders 7.9%, Primary dealers 37.7%Indirect bidders54.3%73.6%Direct bidders7.9%7.2%Primary dealers37.7%19.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders54.373.6
Direct bidders7.97.2
Primary dealers37.719.2

About these figures

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

Treasury's published result

FieldValue
Offered as9-Year 10-Month, reopening
Offering amount$20,000,000,000
Bids received$47,875,641,200
Sold$21,302,646,200
Competitive bids accepted$19,995,341,000
Non-competitive bids accepted$4,660,500
Federal Reserve (SOMA) add-on$1,302,644,700
Foreign and international (FIMA) non-competitive$0
High yield, %1.516
Median rate, %1.470
Low rate, %1.395
Interest rate (coupon), %1.625
Bids at the high rate filled, %93.85
Bid-to-cover ratio2.33
Indirect bidders accepted$10,860,336,000
Direct bidders accepted$1,588,155,000
Primary dealers accepted$7,546,850,000
Indirect bidders' share, % (ours)54.3
Direct bidders' share, % (ours)7.9
Primary dealers' share, % (ours)37.7
High minus median, basis points (ours)4.6
Treasury par yield curve, 10-year point, same day, %1.53
High yield minus that point, basis points (ours)-1.4

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 ratio2.33Last 24 auctions24 of 240 of 242.64
Bid-to-cover ratio2.33Since 7 May 200892 of 1007 of 1002.72
Bid-to-cover ratio2.33All 154 since 10 November 1999117 of 15435 of 1542.62
High yield1.516Last 24 auctions24 of 240 of 242.176
High yield1.516Since 7 May 200899 of 1001 of 1002.616
High yield1.516All 236 since 31 October 1979235 of 2361 of 2364.345
Indirect bidders' share54.3Last 24 auctions17 of 247 of 2458.5
Indirect bidders' share54.3All 100 since 7 May 200822 of 10078 of 10042.8
Direct bidders' share7.9Last 24 auctions20 of 244 of 2412.1
Direct bidders' share7.9All 100 since 7 May 200871 of 10029 of 10011.5
Primary dealers' share37.7Last 24 auctions6 of 2418 of 2429.9
Primary dealers' share37.7All 100 since 7 May 200865 of 10035 of 10041.9
High minus median, basis points4.6Last 24 auctions3 of 2420 of 244.0
High minus median, basis points4.6Since 7 May 200835 of 10063 of 1004.2
High minus median, basis points4.6All 236 since 31 October 197947 of 236187 of 2363.0

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 12 July 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160712_2.pdf. Compiled by 500metrics, "10-year note auction of 12 July 2016 (reopening)", https://500metrics.com/treasury/auctions/10-year-note/2016-07-12.

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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