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10-year TIPS auction of 21 July 2016 (new issue)

The 10-year TIPS sold $13 billion at a high real yield of 0.045% on , with a bid-to-cover ratio of 2.39.

Coupon
0.125%
Announced
Issued
Matures

Real yield

0.045%

Median real yield -0.012%

Bid-to-cover

2.39

▲ +0.12 since 19 May

Sold

$13.00 billion

$13 billion offered

Indirect bidders

68.4%

Of competitive bids accepted

The high real yield was the lowest for a 10-year TIPS since 23 May 2013

Real yield at each 10-year TIPS auction, %

The high real yield was the lowest for a 10-year TIPS since 23 May 201336 auctions from 2 September 2010 to 21 July 2016; the latest at 0.045%.-1.0%-0.5%0.0%0.5%1.0%1.5%201120122013201420152016This auction, 0.045%The high real yield was the lowest for a 10-year TIPS since 23 May 201336 auctions from 2 September 2010 to 21 July 2016; the latest at 0.045%.-1.0%-0.5%0.0%0.5%1.0%20132014201520160.045%

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
0.0452.39
0.2752.27
0.3152.25
0.7252.19
0.6642.38
0.6002.36
0.4912.31
0.3582.33
0.2002.43
0.3152.39
0.4972.57
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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.392.343 of 128 of 12
High real yield0.0450.42412 of 120 of 12
Indirect bidders' share68.464.42 of 1210 of 12
Direct bidders' share7.76.65 of 127 of 12
Primary dealers' share23.928.911 of 121 of 12
High minus median, basis points5.77.08 of 124 of 12

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

Who bought the 10-year TIPS?

Indirect bidders took 68.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 19 May 2016

Indirect bidders took 68.4% of the competitive bids acceptedIndirect bidders 68.4%, Direct bidders 7.7%, Primary dealers 23.9%Indirect bidders68.4%63.4%Direct bidders7.7%4.1%Primary dealers23.9%32.5%Indirect bidders took 68.4% of the competitive bids acceptedIndirect bidders 68.4%, Direct bidders 7.7%, Primary dealers 23.9%Indirect bidders68.4%63.4%Direct bidders7.7%4.1%Primary dealers23.9%32.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders68.463.4
Direct bidders7.74.1
Primary dealers23.932.5

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$13,000,000,000
Bids received$31,130,813,700
Sold$13,000,041,400
Competitive bids accepted$12,964,877,700
Non-competitive bids accepted$35,163,700
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
Real yield, %0.045
Median rate, %-0.012
Low rate, %-0.100
Interest rate (coupon), %0.125
Bids at the high rate filled, %89.36
Bid-to-cover ratio2.39
Indirect bidders accepted$8,864,877,700
Direct bidders accepted$1,000,000,000
Primary dealers accepted$3,100,000,000
Indirect bidders' share, % (ours)68.4
Direct bidders' share, % (ours)7.7
Primary dealers' share, % (ours)23.9
High minus median, basis points (ours)5.7
Treasury real par yield curve, 10-year point, same day, %0.05
High yield minus that point, basis points (ours)-0.5

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 ratio2.39Last 24 auctions12 of 2411 of 242.41
Bid-to-cover ratio2.39Since 10 April 200828 of 4516 of 452.51
Bid-to-cover ratio2.39All 73 since 29 January 199732 of 7339 of 732.37
High real yield0.045Last 24 auctions18 of 246 of 240.348
High real yield0.045Since 10 April 200836 of 459 of 450.500
High real yield0.045All 78 since 29 January 199769 of 789 of 781.498
Indirect bidders' share68.4Last 24 auctions2 of 2422 of 2456.7
Indirect bidders' share68.4All 45 since 10 April 20082 of 4543 of 4549.7
Direct bidders' share7.7Last 24 auctions12 of 2412 of 247.8
Direct bidders' share7.7All 45 since 10 April 200819 of 4526 of 457.1
Primary dealers' share23.9Last 24 auctions23 of 241 of 2433.0
Primary dealers' share23.9All 45 since 10 April 200844 of 451 of 4540.0
High minus median, basis points5.7Last 24 auctions15 of 249 of 246.8
High minus median, basis points5.7Since 10 April 200828 of 4517 of 456.8
High minus median, basis points5.7All 78 since 29 January 199737 of 7841 of 785.4

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 21 July 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160721_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 21 July 2016 (new issue)", https://500metrics.com/treasury/auctions/10-year-tips/2016-07-21.

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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