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10-year TIPS auction of 19 July 2012 (new issue)

The 10-year TIPS sold $15 billion at a high real yield of -0.637% on , with a bid-to-cover ratio of 2.62.

Coupon
0.125%
Announced
Issued
Matures

Real yield

-0.637%

Median real yield -0.710%

Bid-to-cover

2.62

▼ −0.39 since 17 May

Sold

$15.00 billion

$15 billion offered

Indirect bidders

44.2%

Of competitive bids accepted

The high real yield was the lowest for a 10-year TIPS of all 54 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 54 earlier auctions we hold36 auctions from 7 October 2004 to 19 July 2012; the latest at -0.637%.-1.0%0.0%1.0%2.0%3.0%20052006200720082009201020112012This auction, -0.637%The high real yield was the lowest for a 10-year TIPS of all 54 earlier auctions we hold36 auctions from 7 October 2004 to 19 July 2012; the latest at -0.637%.-1.0%0.0%1.0%2.0%3.0%20082009201020112012-0.637%

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
-0.6372.62
-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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.622.809 of 122 of 12
High real yield-0.6370.52412 of 120 of 12
Indirect bidders' share44.241.25 of 127 of 12
Direct bidders' share16.19.32 of 1210 of 12
Primary dealers' share39.744.39 of 123 of 12
High minus median, basis points7.36.14 of 128 of 12

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

Who bought the 10-year TIPS?

Indirect bidders took 44.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 17 May 2012

Indirect bidders took 44.2% of the competitive bids acceptedIndirect bidders 44.2%, Direct bidders 16.1%, Primary dealers 39.7%Indirect bidders44.2%50.7%Direct bidders16.1%14.8%Primary dealers39.7%34.5%Indirect bidders took 44.2% of the competitive bids acceptedIndirect bidders 44.2%, Direct bidders 16.1%, Primary dealers 39.7%Indirect bidders44.2%50.7%Direct bidders16.1%14.8%Primary dealers39.7%34.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders44.250.7
Direct bidders16.114.8
Primary dealers39.734.5

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$15,000,000,000
Bids received$39,313,200,000
Sold$15,000,005,000
Competitive bids accepted$14,873,305,000
Non-competitive bids accepted$66,700,000
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$60,000,000
Real yield, %-0.637
Median rate, %-0.710
Low rate, %-0.836
Interest rate (coupon), %0.125
Bids at the high rate filled, %27.74
Bid-to-cover ratio2.62
Indirect bidders accepted$6,578,370,000
Direct bidders accepted$2,390,000,000
Primary dealers accepted$5,904,935,000
Indirect bidders' share, % (ours)44.2
Direct bidders' share, % (ours)16.1
Primary dealers' share, % (ours)39.7
High minus median, basis points (ours)7.3
Treasury real par yield curve, 10-year point, same day, %-0.62
High yield minus that point, basis points (ours)-1.7

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 ratio2.62Last 24 auctions12 of 2411 of 242.63
Bid-to-cover ratio2.62Since 10 April 200812 of 218 of 212.65
Bid-to-cover ratio2.62All 49 since 29 January 199714 of 4934 of 492.25
High real yield-0.637Last 24 auctions24 of 240 of 241.272
High real yield-0.637Since 10 April 200821 of 210 of 211.170
High real yield-0.637All 54 since 29 January 199754 of 540 of 542.009
Indirect bidders' share44.2All 21 since 10 April 20088 of 2113 of 2140.7
Direct bidders' share16.1All 21 since 10 April 20082 of 2119 of 214.2
Primary dealers' share39.7All 21 since 10 April 200818 of 213 of 2150.9
High minus median, basis points7.3Last 24 auctions9 of 2415 of 246.2
High minus median, basis points7.3Since 10 April 20089 of 2112 of 216.8
High minus median, basis points7.3All 54 since 29 January 199714 of 5440 of 545.0

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 19 July 2012. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20120719_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 19 July 2012 (new issue)", https://500metrics.com/treasury/auctions/10-year-tips/2012-07-19.

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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