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10-year TIPS auction of 2 September 2010 (reopening)

The 10-year TIPS sold $10.108 billion at a high real yield of 1.019% on , with a bid-to-cover ratio of 2.80.

Coupon
1.250%
Announced
Issued
Matures

Real yield

1.019%

Median real yield 0.940%

Bid-to-cover

2.80

▼ −0.08 since 8 Jul

Sold

$10.11 billion

$10 billion offered

Indirect bidders

46.6%

Of competitive bids accepted

The high real yield was the lowest for a 10-year TIPS of all 43 earlier auctions we hold

Real yield at each 10-year TIPS auction, %

The high real yield was the lowest for a 10-year TIPS of all 43 earlier auctions we hold36 auctions from 10 January 2001 to 2 September 2010; the latest at 1.019%.1.0%2.0%3.0%4.0%200220032004200520062007200820092010This auction, 1.019%The high real yield was the lowest for a 10-year TIPS of all 43 earlier auctions we hold36 auctions from 10 January 2001 to 2 September 2010; the latest at 1.019%.1.0%1.5%2.0%2.5%3.0%200620072008200920101.019%

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
1.0192.80
1.2952.88
1.7093.43
1.4302.65
1.5103.12
1.9202.51
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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.802.363 of 129 of 12
High real yield1.0191.62212 of 120 of 12
Indirect bidders' share46.642.34 of 106 of 10
Direct bidders' share2.53.56 of 104 of 10
Primary dealers' share50.955.37 of 103 of 10
High minus median, basis points7.96.25 of 127 of 12

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

Who bought the 10-year TIPS?

Primary dealers took 50.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 8 July 2010

Primary dealers took 50.9% of the competitive bids acceptedIndirect bidders 46.6%, Direct bidders 2.5%, Primary dealers 50.9%Indirect bidders46.6%51.9%Direct bidders2.5%4.2%Primary dealers50.9%43.9%Primary dealers took 50.9% of the competitive bids acceptedIndirect bidders 46.6%, Direct bidders 2.5%, Primary dealers 50.9%Indirect bidders46.6%51.9%Direct bidders2.5%4.2%Primary dealers50.9%43.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders46.651.9
Direct bidders2.54.2
Primary dealers50.943.9

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$10,000,000,000
Bids received$28,069,968,000
Sold$10,108,183,000
Competitive bids accepted$9,937,855,000
Non-competitive bids accepted$62,146,200
Federal Reserve (SOMA) add-on$108,181,800
Foreign and international (FIMA) non-competitive$0
Real yield, %1.019
Median rate, %0.940
Low rate, %0.845
Interest rate (coupon), %1.250
Bids at the high rate filled, %24.86
Bid-to-cover ratio2.80
Indirect bidders accepted$4,634,290,000
Direct bidders accepted$250,000,000
Primary dealers accepted$5,053,565,000
Indirect bidders' share, % (ours)46.6
Direct bidders' share, % (ours)2.5
Primary dealers' share, % (ours)50.9
High minus median, basis points (ours)7.9
Treasury real par yield curve, 10-year point, same day, %1.05
High yield minus that point, basis points (ours)-3.1

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 ratio2.80Last 24 auctions3 of 2421 of 242.07
Bid-to-cover ratio2.80Since 10 April 20083 of 107 of 102.50
Bid-to-cover ratio2.80All 38 since 29 January 19975 of 3833 of 382.10
High real yield1.019Last 24 auctions24 of 240 of 241.930
High real yield1.019Since 10 April 200810 of 100 of 101.550
High real yield1.019All 43 since 29 January 199743 of 430 of 432.260
Indirect bidders' share46.6All 10 since 10 April 20084 of 106 of 1042.3
Direct bidders' share2.5All 10 since 10 April 20086 of 104 of 103.5
Primary dealers' share50.9All 10 since 10 April 20087 of 103 of 1055.3
High minus median, basis points7.9Last 24 auctions5 of 2418 of 245.0
High minus median, basis points7.9Since 10 April 20085 of 105 of 107.2
High minus median, basis points7.9All 43 since 29 January 19979 of 4333 of 434.9

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 2 September 2010. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/R_20100902_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 2 September 2010 (reopening)", https://500metrics.com/treasury/auctions/10-year-tips/2010-09-02.

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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