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10-year TIPS auction of 18 September 2014 (reopening)

The 10-year TIPS sold $13 billion at a high real yield of 0.610% on , with a bid-to-cover ratio of 2.20.

Coupon
0.125%
Announced
Issued
Matures

Real yield

0.610%

Median real yield 0.540%

Bid-to-cover

2.20

▼ −0.29 since 24 Jul

Sold

$13.00 billion

$13 billion offered

Indirect bidders

52.7%

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 10 January 2008 to 18 September 2014; the latest at 0.610%.-1.0%0.0%1.0%2.0%3.0%2008200920102011201220132014This auction, 0.610%Real yield at the last 36 10-year TIPS auctions36 auctions from 10 January 2008 to 18 September 2014; the latest at 0.610%.-1.0%-0.5%0.0%0.5%1.0%1.5%20112012201320140.610%

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
0.6102.20
0.2492.49
0.3392.91
0.6592.48
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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.202.5012 of 120 of 12
High real yield0.6100.2942 of 1210 of 12
Indirect bidders' share52.752.46 of 126 of 12
Direct bidders' share5.78.111 of 121 of 12
Primary dealers' share41.738.34 of 128 of 12
High minus median, basis points7.05.74 of 128 of 12

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

  • Bid-to-cover ratio: Lowest for a 10-year TIPS since 10 July 2008 (32 auctions in between).

Who bought the 10-year TIPS?

Indirect bidders took 52.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 24 July 2014

Indirect bidders took 52.7% of the competitive bids acceptedIndirect bidders 52.7%, Direct bidders 5.7%, Primary dealers 41.7%Indirect bidders52.7%53.1%Direct bidders5.7%10.3%Primary dealers41.7%36.6%Indirect bidders took 52.7% of the competitive bids acceptedIndirect bidders 52.7%, Direct bidders 5.7%, Primary dealers 41.7%Indirect bidders52.7%53.1%Direct bidders5.7%10.3%Primary dealers41.7%36.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders52.753.1
Direct bidders5.710.3
Primary dealers41.736.6

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$13,000,000,000
Bids received$28,661,424,000
Sold$13,000,009,000
Competitive bids accepted$12,975,895,000
Non-competitive bids accepted$24,114,000
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
Real yield, %0.610
Median rate, %0.540
Low rate, %0.460
Interest rate (coupon), %0.125
Bids at the high rate filled, %32.05
Bid-to-cover ratio2.20
Indirect bidders accepted$6,834,335,000
Direct bidders accepted$735,000,000
Primary dealers accepted$5,406,560,000
Indirect bidders' share, % (ours)52.7
Direct bidders' share, % (ours)5.7
Primary dealers' share, % (ours)41.7
High minus median, basis points (ours)7.0
Treasury real par yield curve, 10-year point, same day, %0.61
High yield minus that point, basis points (ours)0.0

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 ratio2.20Last 24 auctions24 of 240 of 242.62
Bid-to-cover ratio2.20Since 10 April 200832 of 342 of 342.62
Bid-to-cover ratio2.20All 62 since 29 January 199740 of 6222 of 622.38
High real yield0.610Last 24 auctions7 of 2417 of 240.294
High real yield0.610Since 10 April 200817 of 3417 of 340.600
High real yield0.610All 67 since 29 January 199750 of 6717 of 671.750
Indirect bidders' share52.7Last 24 auctions7 of 2417 of 2446.6
Indirect bidders' share52.7All 34 since 10 April 20087 of 3427 of 3446.6
Direct bidders' share5.7Last 24 auctions19 of 245 of 249.3
Direct bidders' share5.7All 34 since 10 April 200821 of 3413 of 347.3
Primary dealers' share41.7Last 24 auctions11 of 2413 of 2440.7
Primary dealers' share41.7All 34 since 10 April 200820 of 3414 of 3444.3
High minus median, basis points7.0Last 24 auctions9 of 2415 of 246.3
High minus median, basis points7.0Since 10 April 200814 of 3420 of 346.6
High minus median, basis points7.0All 67 since 29 January 199719 of 6748 of 675.2

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 18 September 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140918_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 18 September 2014 (reopening)", https://500metrics.com/treasury/auctions/10-year-tips/2014-09-18.

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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