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10-year note auction of 10 January 2018 (reopening)

The 10-year note sold $20.677 billion at a high yield of 2.579% on , with a bid-to-cover ratio of 2.69.

Coupon
2.250%
Announced
Issued
Matures

High yield

2.579%

Median yield 2.540%

Bid-to-cover

2.69

▲ +0.32 since 11 Dec

Sold

$20.68 billion

$20 billion offered

Indirect bidders

71.4%

Of competitive bids accepted

The high yield was the highest for a 10-year note since 9 July 2014

High yield at each 10-year note auction, %

The high yield was the highest for a 10-year note since 9 July 201436 auctions from 11 February 2015 to 10 January 2018; the latest at 2.579%.1.5%2.0%2.5%3.0%2015201620172018This auction, 2.579%The high yield was the highest for a 10-year note since 9 July 201436 auctions from 11 February 2015 to 10 January 2018; the latest at 2.579%.1.5%2.0%2.5%3.0%2016201720182.579%

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
2.5792.69
2.3842.37
2.3142.48
2.3462.54
2.1802.28
2.2502.23
2.3252.45
2.1952.54
2.4002.33
2.3322.48
2.5602.66
2.3332.29
2.3422.58
2.4852.39
2.0202.22
1.7932.53
1.6992.35
1.5032.43
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

Against its own history

Against the previous 12 auctions of the 10-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.692.460 of 1212 of 12
High yield2.5792.3320 of 1212 of 12
Indirect bidders' share71.465.10 of 1212 of 12
Direct bidders' share6.56.05 of 127 of 12
Primary dealers' share22.029.510 of 122 of 12
High minus median, basis points3.95.012 of 120 of 12

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

  • Bid-to-cover ratio: Highest for a 10-year note since 8 June 2016 (18 auctions in between).
  • Indirect bidders' share: Highest for a 10-year note since 10 August 2016 (16 auctions in between).
  • High minus median, basis points: Lowest for a 10-year note since 11 May 2016 (19 auctions in between).

Who bought the 10-year note?

Indirect bidders took 71.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year note auction, 11 December 2017

Indirect bidders took 71.4% of the competitive bids acceptedIndirect bidders 71.4%, Direct bidders 6.5%, Primary dealers 22.0%Indirect bidders71.4%57.2%Direct bidders6.5%8.4%Primary dealers22.0%34.4%Indirect bidders took 71.4% of the competitive bids acceptedIndirect bidders 71.4%, Direct bidders 6.5%, Primary dealers 22.0%Indirect bidders71.4%57.2%Direct bidders6.5%8.4%Primary dealers22.0%34.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders71.457.2
Direct bidders6.58.4
Primary dealers22.034.4

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$54,482,382,100
Sold$20,677,365,100
Competitive bids accepted$19,991,883,000
Non-competitive bids accepted$8,167,000
Federal Reserve (SOMA) add-on$677,315,100
Foreign and international (FIMA) non-competitive$0
High yield, %2.579
Median rate, %2.540
Low rate, %2.400
Interest rate (coupon), %2.250
Bids at the high rate filled, %10.65
Bid-to-cover ratio2.69
Indirect bidders accepted$14,277,518,000
Direct bidders accepted$1,307,000,000
Primary dealers accepted$4,407,365,000
Indirect bidders' share, % (ours)71.4
Direct bidders' share, % (ours)6.5
Primary dealers' share, % (ours)22.0
High minus median, basis points (ours)3.9
Treasury par yield curve, 10-year point, same day, %2.55
High yield minus that point, basis points (ours)2.9

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 ratio2.69Last 24 auctions3 of 2421 of 242.48
Bid-to-cover ratio2.69Since 7 May 200855 of 11863 of 1182.66
Bid-to-cover ratio2.69All 172 since 10 November 199963 of 172109 of 1722.59
High yield2.579Last 24 auctions0 of 2424 of 242.188
High yield2.579Since 7 May 200852 of 11866 of 1182.410
High yield2.579All 254 since 31 October 1979188 of 25466 of 2544.142
Indirect bidders' share71.4Last 24 auctions3 of 2421 of 2463.8
Indirect bidders' share71.4All 118 since 7 May 20083 of 118115 of 11846.1
Direct bidders' share6.5Last 24 auctions15 of 249 of 247.4
Direct bidders' share6.5All 118 since 7 May 200884 of 11834 of 11810.4
Primary dealers' share22.0Last 24 auctions18 of 246 of 2429.5
Primary dealers' share22.0All 118 since 7 May 2008110 of 1188 of 11839.9
High minus median, basis points3.9Last 24 auctions23 of 241 of 244.6
High minus median, basis points3.9Since 7 May 200875 of 11841 of 1184.4
High minus median, basis points3.9All 254 since 31 October 1979100 of 254151 of 2543.2

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 10 January 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180110_1.pdf. Compiled by 500metrics, "10-year note auction of 10 January 2018 (reopening)", https://500metrics.com/treasury/auctions/10-year-note/2018-01-10.

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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