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10-year TIPS auction of 23 January 2014 (new issue)

The 10-year TIPS sold $15 billion at a high real yield of 0.661% on , with a bid-to-cover ratio of 2.31.

Coupon
0.625%
Announced
Issued
Matures

Real yield

0.661%

Median real yield 0.609%

Bid-to-cover

2.31

▼ −0.28 since 21 Nov

Sold

$15.00 billion

$15 billion offered

Indirect bidders

51.8%

Of competitive bids accepted

The high real yield was the highest for a 10-year TIPS since 19 May 2011

Real yield at each 10-year TIPS auction, %

The high real yield was the highest for a 10-year TIPS since 19 May 201136 auctions from 11 January 2007 to 23 January 2014; the latest at 0.661%.-1.0%0.0%1.0%2.0%3.0%20072008200920102011201220132014This auction, 0.661%The high real yield was the highest for a 10-year TIPS since 19 May 201136 auctions from 11 January 2007 to 23 January 2014; the latest at 0.661%.-1.0%0.0%1.0%2.0%201020112012201320140.661%

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
0.6612.31
0.5602.59
0.5002.38
0.3842.44
-0.2252.52
-0.6022.74
-0.6302.71
-0.7202.52
-0.7502.36
-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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.312.6012 of 120 of 12
High real yield0.661-0.3080 of 1212 of 12
Indirect bidders' share51.849.54 of 128 of 12
Direct bidders' share8.311.88 of 124 of 12
Primary dealers' share39.939.15 of 127 of 12
High minus median, basis points5.26.19 of 123 of 12

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

  • Bid-to-cover ratio: Lowest for a 10-year TIPS since 7 April 2009 (25 auctions in between).

Who bought the 10-year TIPS?

Indirect bidders took 51.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 21 November 2013

Indirect bidders took 51.8% of the competitive bids acceptedIndirect bidders 51.8%, Direct bidders 8.3%, Primary dealers 39.9%Indirect bidders51.8%46.7%Direct bidders8.3%21.5%Primary dealers39.9%31.8%Indirect bidders took 51.8% of the competitive bids acceptedIndirect bidders 51.8%, Direct bidders 8.3%, Primary dealers 39.9%Indirect bidders51.8%46.7%Direct bidders8.3%21.5%Primary dealers39.9%31.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders51.846.7
Direct bidders8.321.5
Primary dealers39.931.8

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$34,597,925,300
Sold$15,000,000,300
Competitive bids accepted$14,958,985,000
Non-competitive bids accepted$41,015,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
Real yield, %0.661
Median rate, %0.609
Low rate, %0.530
Interest rate (coupon), %0.625
Bids at the high rate filled, %46.30
Bid-to-cover ratio2.31
Indirect bidders accepted$7,749,410,000
Direct bidders accepted$1,239,000,000
Primary dealers accepted$5,970,575,000
Indirect bidders' share, % (ours)51.8
Direct bidders' share, % (ours)8.3
Primary dealers' share, % (ours)39.9
High minus median, basis points (ours)5.2
Treasury real par yield curve, 10-year point, same day, %0.66
High yield minus that point, basis points (ours)0.1

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 ratio2.31Last 24 auctions24 of 240 of 242.66
Bid-to-cover ratio2.31Since 10 April 200826 of 304 of 302.62
Bid-to-cover ratio2.31All 58 since 29 January 199732 of 5826 of 582.38
High real yield0.661Last 24 auctions8 of 2416 of 240.396
High real yield0.661Since 10 April 200814 of 3016 of 300.600
High real yield0.661All 63 since 29 January 199747 of 6316 of 631.885
Indirect bidders' share51.8Last 24 auctions6 of 2418 of 2445.3
Indirect bidders' share51.8All 30 since 10 April 20086 of 3024 of 3045.3
Direct bidders' share8.3Last 24 auctions11 of 2413 of 247.6
Direct bidders' share8.3All 30 since 10 April 200812 of 3018 of 307.0
Primary dealers' share39.9Last 24 auctions16 of 248 of 2443.4
Primary dealers' share39.9All 30 since 10 April 200821 of 309 of 3044.6
High minus median, basis points5.2Last 24 auctions18 of 246 of 246.8
High minus median, basis points5.2Since 10 April 200822 of 308 of 306.8
High minus median, basis points5.2All 63 since 29 January 199732 of 6330 of 635.3

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 23 January 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140123_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 23 January 2014 (new issue)", https://500metrics.com/treasury/auctions/10-year-tips/2014-01-23.

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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