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10-year TIPS auction of 17 May 2012 (reopening)

The 10-year TIPS sold $13 billion at a high real yield of -0.391% on , with a bid-to-cover ratio of 3.01.

Coupon
0.125%
Announced
Issued
Matures

Real yield

-0.391%

Median real yield -0.420%

Bid-to-cover

3.01

▲ +0.20 since 22 Mar

Sold

$13.00 billion

$13 billion offered

Indirect bidders

50.7%

Of competitive bids accepted

The high real yield was the lowest for a 10-year TIPS of all 53 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 53 earlier auctions we hold36 auctions from 8 July 2004 to 17 May 2012; the latest at -0.391%.-1.0%0.0%1.0%2.0%3.0%20052006200720082009201020112012This auction, -0.391%The high real yield was the lowest for a 10-year TIPS of all 53 earlier auctions we hold36 auctions from 8 July 2004 to 17 May 2012; the latest at -0.391%.-1.0%0.0%1.0%2.0%3.0%20082009201020112012-0.391%

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
-0.3913.01
-0.0892.81
-0.0462.91
0.0992.64
0.0782.61
0.6392.62
0.8872.66
0.9202.97
1.1702.37
0.4092.91
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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.012.801 of 1211 of 12
High real yield-0.3910.76312 of 120 of 12
Indirect bidders' share50.740.52 of 1210 of 12
Direct bidders' share14.87.32 of 1210 of 12
Primary dealers' share34.547.511 of 121 of 12
High minus median, basis points2.96.412 of 120 of 12

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

  • High minus median, basis points: Lowest for a 10-year TIPS since 12 April 2007 (23 auctions in between).

Who bought the 10-year TIPS?

Indirect bidders took 50.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 22 March 2012

Indirect bidders took 50.7% of the competitive bids acceptedIndirect bidders 50.7%, Direct bidders 14.8%, Primary dealers 34.5%Indirect bidders50.7%40.4%Direct bidders14.8%21.1%Primary dealers34.5%38.5%Indirect bidders took 50.7% of the competitive bids acceptedIndirect bidders 50.7%, Direct bidders 14.8%, Primary dealers 34.5%Indirect bidders50.7%40.4%Direct bidders14.8%21.1%Primary dealers34.5%38.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.740.4
Direct bidders14.821.1
Primary dealers34.538.5

About these figures

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

Treasury's published result

FieldValue
Offered as9-Year 8-Month, reopening
Offering amount$13,000,000,000
Bids received$39,153,945,400
Sold$13,000,457,900
Competitive bids accepted$12,977,192,500
Non-competitive bids accepted$23,091,200
Federal Reserve (SOMA) add-on$174,200
Foreign and international (FIMA) non-competitive$0
Real yield, %-0.391
Median rate, %-0.420
Low rate, %-0.455
Interest rate (coupon), %0.125
Bids at the high rate filled, %86.03
Bid-to-cover ratio3.01
Indirect bidders accepted$6,574,100,000
Direct bidders accepted$1,926,092,500
Primary dealers accepted$4,477,000,000
Indirect bidders' share, % (ours)50.7
Direct bidders' share, % (ours)14.8
Primary dealers' share, % (ours)34.5
High minus median, basis points (ours)2.9
Treasury real par yield curve, 10-year point, same day, %-0.35
High yield minus that point, basis points (ours)-4.1

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 ratio3.01Last 24 auctions2 of 2422 of 242.62
Bid-to-cover ratio3.01Since 10 April 20082 of 2018 of 202.64
Bid-to-cover ratio3.01All 48 since 29 January 19974 of 4844 of 482.24
High real yield-0.391Last 24 auctions24 of 240 of 241.362
High real yield-0.391Since 10 April 200820 of 200 of 201.210
High real yield-0.391All 53 since 29 January 199753 of 530 of 532.019
Indirect bidders' share50.7All 20 since 10 April 20082 of 2018 of 2040.7
Direct bidders' share14.8All 20 since 10 April 20082 of 2018 of 204.1
Primary dealers' share34.5All 20 since 10 April 200819 of 201 of 2051.6
High minus median, basis points2.9Last 24 auctions23 of 240 of 246.2
High minus median, basis points2.9Since 10 April 200820 of 200 of 206.8
High minus median, basis points2.9All 53 since 29 January 199748 of 534 of 535.0

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 17 May 2012. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20120517_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 17 May 2012 (reopening)", https://500metrics.com/treasury/auctions/10-year-tips/2012-05-17.

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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