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10-year TIPS auction of 10 July 2008 (new issue)

The 10-year TIPS sold $8 billion at a high real yield of 1.485% on , with a bid-to-cover ratio of 1.83.

Coupon
1.375%
Announced
Issued
Matures

Real yield

1.485%

Median real yield 1.420%

Bid-to-cover

1.83

▼ −0.28 since 10 Apr

Sold

$8.00 billion

$8 billion offered

Indirect bidders

36.9%

Of competitive bids accepted

Real yield at the last 35 10-year TIPS auctions

Real yield at each 10-year TIPS auction, %

Real yield at the last 35 10-year TIPS auctions35 auctions from 29 January 1997 to 10 July 2008; the latest at 1.485%.1.0%2.0%3.0%4.0%5.0%19981999200020012002200320042005200620072008This auction, 1.485%Real yield at the last 35 10-year TIPS auctions35 auctions from 29 January 1997 to 10 July 2008; the latest at 1.485%.1.0%1.5%2.0%2.5%3.0%3.5%2003200420052006200720081.485%

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

The 35 auctions as a table
Real yield and bid-to-cover of the last 35 10-year TIPS auctions, newest first
AuctionReal yield, %Bid-to-cover
1.4851.83
1.2502.11
1.6551.90
2.3602.05
2.7491.97
2.2841.88
2.4491.67
2.4262.09
2.5501.76
2.4091.95
2.0251.85
1.9792.11
1.9391.68
1.7501.97
1.7251.88
1.8852.44
2.0201.89
1.8091.78
2.0191.95
2.2292.25
1.9992.18
2.3402.22
2.2601.36
3.0992.43
3.4802.39
3.5001.90
3.5221.68
4.0302.35
4.3383.07
4.040–
3.898–
3.650–
3.730–
3.650–
3.4495.31

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio1.831.929 of 123 of 12
High real yield1.4852.32211 of 121 of 12
Indirect bidders' share36.929.50 of 11 of 1
Direct bidders' share0.53.91 of 10 of 1
Primary dealers' share62.666.61 of 10 of 1
High minus median, basis points6.54.01 of 1211 of 12

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

Who bought the 10-year TIPS?

Primary dealers took 62.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 10 April 2008

Primary dealers took 62.6% of the competitive bids acceptedIndirect bidders 36.9%, Direct bidders 0.5%, Primary dealers 62.6%Indirect bidders36.9%29.5%Direct bidders0.5%3.9%Primary dealers62.6%66.6%Primary dealers took 62.6% of the competitive bids acceptedIndirect bidders 36.9%, Direct bidders 0.5%, Primary dealers 62.6%Indirect bidders36.9%29.5%Direct bidders0.5%3.9%Primary dealers62.6%66.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders36.929.5
Direct bidders0.53.9
Primary dealers62.666.6

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$8,000,000,000
Bids received$14,642,431,300
Sold$8,000,041,300
Competitive bids accepted$7,862,030,000
Non-competitive bids accepted$88,011,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$50,000,000
Real yield, %1.485
Median rate, %1.420
Low rate, %1.300
Interest rate (coupon), %1.375
Bids at the high rate filled, %55.02
Bid-to-cover ratio1.83
Indirect bidders accepted$2,905,020,000
Direct bidders accepted$35,500,000
Primary dealers accepted$4,921,510,000
Indirect bidders' share, % (ours)36.9
Direct bidders' share, % (ours)0.5
Primary dealers' share, % (ours)62.6
High minus median, basis points (ours)6.5
Treasury real par yield curve, 10-year point, same day, %1.40
High yield minus that point, basis points (ours)8.5

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

How to read this result

The high real 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 real par yield curve comparison sets the high yield against Treasury's own real 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 TIPS auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio1.83Last 24 auctions19 of 245 of 241.96
Bid-to-cover ratio1.83Since 10 April 20081 of 10 of 12.11
Bid-to-cover ratio1.83All 29 since 29 January 199723 of 296 of 291.97
High real yield1.485Last 24 auctions23 of 241 of 242.127
High real yield1.485Since 10 April 20080 of 11 of 11.250
High real yield1.485All 34 since 29 January 199733 of 341 of 342.384
Indirect bidders' share36.9All 1 since 10 April 20080 of 11 of 129.5
Direct bidders' share0.5All 1 since 10 April 20081 of 10 of 13.9
Primary dealers' share62.6All 1 since 10 April 20081 of 10 of 166.6
High minus median, basis points6.5Last 24 auctions4 of 2420 of 244.6
High minus median, basis points6.5Since 10 April 20080 of 11 of 15.0
High minus median, basis points6.5All 34 since 29 January 19975 of 3429 of 344.2

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 July 2008. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2008/R_20080710_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 10 July 2008 (new issue)", https://500metrics.com/treasury/auctions/10-year-tips/2008-07-10.

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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