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10-year TIPS auction of 7 April 2009 (reopening)

The 10-year TIPS sold $6.096 billion at a high real yield of 1.589% on , with a bid-to-cover ratio of 2.25.

Coupon
2.125%
Announced
Issued
Matures

Real yield

1.589%

Median real yield 1.345%

Bid-to-cover

2.25

▼ −0.23 since 6 Jan

Sold

$6.10 billion

$6 billion offered

Indirect bidders

26.2%

Of competitive bids accepted

Real yield at the last 36 10-year TIPS auctions

Real yield at each 10-year TIPS auction, %

Real yield at the last 36 10-year TIPS auctions36 auctions from 8 January 1998 to 7 April 2009; the latest at 1.589%.1.0%2.0%3.0%4.0%5.0%19992000200120022003200420052006200720082009This auction, 1.589%Real yield at the last 36 10-year TIPS auctions36 auctions from 8 January 1998 to 7 April 2009; the latest at 1.589%.1.0%1.5%2.0%2.5%3.0%2004200520062007200820091.589%

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

The 36 auctions as a table
Real yield and bid-to-cover of the last 36 10-year TIPS auctions, newest first
AuctionReal yield, %Bid-to-cover
1.5892.25
2.2452.48
2.8502.22
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–

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.251.961 of 1211 of 12
High real yield1.5892.38410 of 122 of 12
Indirect bidders' share26.242.14 of 40 of 4
Direct bidders' share2.02.22 of 42 of 4
Primary dealers' share71.957.40 of 44 of 4
High minus median, basis points24.44.80 of 1212 of 12

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

  • High minus median, basis points: Highest of all 37 earlier 10-year TIPS auctions we hold.

Who bought the 10-year TIPS?

Primary dealers took 71.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 6 January 2009

Primary dealers took 71.9% of the competitive bids acceptedIndirect bidders 26.2%, Direct bidders 2.0%, Primary dealers 71.9%Indirect bidders26.2%47.3%Direct bidders2.0%12.9%Primary dealers71.9%39.8%Primary dealers took 71.9% of the competitive bids acceptedIndirect bidders 26.2%, Direct bidders 2.0%, Primary dealers 71.9%Indirect bidders26.2%47.3%Direct bidders2.0%12.9%Primary dealers71.9%39.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders26.247.3
Direct bidders2.012.9
Primary dealers71.939.8

About these figures

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

Treasury's published result

FieldValue
Offered as9-Year 9-Month, reopening
Offering amount$6,000,000,000
Bids received$13,599,102,300
Sold$6,095,519,300
Competitive bids accepted$5,714,782,000
Non-competitive bids accepted$285,245,800
Federal Reserve (SOMA) add-on$95,491,500
Foreign and international (FIMA) non-competitive$0
Real yield, %1.589
Median rate, %1.345
Low rate, %0.850
Interest rate (coupon), %2.125
Bids at the high rate filled, %46.54
Bid-to-cover ratio2.25
Indirect bidders accepted$1,494,452,000
Direct bidders accepted$113,000,000
Primary dealers accepted$4,107,330,000
Indirect bidders' share, % (ours)26.2
Direct bidders' share, % (ours)2.0
Primary dealers' share, % (ours)71.9
High minus median, basis points (ours)24.4
Treasury real par yield curve, 10-year point, same day, %1.61
High yield minus that point, basis points (ours)-2.1

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 ratio2.25Last 24 auctions2 of 2421 of 241.96
Bid-to-cover ratio2.25Since 10 April 20081 of 43 of 42.16
Bid-to-cover ratio2.25All 32 since 29 January 19977 of 3224 of 321.97
High real yield1.589Last 24 auctions22 of 242 of 242.022
High real yield1.589Since 10 April 20082 of 42 of 41.865
High real yield1.589All 37 since 29 January 199735 of 372 of 372.360
Indirect bidders' share26.2All 4 since 10 April 20084 of 40 of 442.1
Direct bidders' share2.0All 4 since 10 April 20082 of 42 of 42.2
Primary dealers' share71.9All 4 since 10 April 20080 of 44 of 457.4
High minus median, basis points24.4Last 24 auctions0 of 2424 of 244.8
High minus median, basis points24.4Since 10 April 20080 of 44 of 45.8
High minus median, basis points24.4All 37 since 29 January 19970 of 3737 of 374.6

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 7 April 2009. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/R_20090407_3.pdf. Compiled by 500metrics, "10-year TIPS auction of 7 April 2009 (reopening)", https://500metrics.com/treasury/auctions/10-year-tips/2009-04-07.

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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