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10-year TIPS auction of 18 January 2018 (new issue)

The 10-year TIPS sold $14.911 billion at a high real yield of 0.548% on , with a bid-to-cover ratio of 2.69.

Coupon
0.500%
Announced
Issued
Matures

Real yield

0.548%

Median real yield 0.508%

Bid-to-cover

2.69

▲ +0.26 since 16 Nov

Sold

$14.91 billion

$13 billion offered

Indirect bidders

78.9%

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 22 March 2012 to 18 January 2018; the latest at 0.548%.-1.0%-0.5%0.0%0.5%1.0%2012201320142015201620172018This auction, 0.548%Real yield at the last 36 10-year TIPS auctions36 auctions from 22 March 2012 to 18 January 2018; the latest at 0.548%.0.0%0.2%0.4%0.6%0.8%201420152016201720180.548%

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
0.5482.69
0.5122.43
0.4502.32
0.4891.98
0.4202.56
0.4662.23
0.4362.45
0.3692.39
0.0522.59
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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.692.360 of 1212 of 12
High real yield0.5480.4281 of 1211 of 12
Indirect bidders' share78.968.71 of 1211 of 12
Direct bidders' share10.07.41 of 1211 of 12
Primary dealers' share11.026.812 of 120 of 12
High minus median, basis points4.06.210 of 122 of 12

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

  • Bid-to-cover ratio: Highest for a 10-year TIPS since 22 May 2014 (21 auctions in between).
  • Primary dealers' share: Lowest of all 54 earlier 10-year TIPS auctions we hold.

Who bought the 10-year TIPS?

Indirect bidders took 78.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 16 November 2017

Indirect bidders took 78.9% of the competitive bids acceptedIndirect bidders 78.9%, Direct bidders 10.0%, Primary dealers 11.0%Indirect bidders78.9%69.0%Direct bidders10.0%4.8%Primary dealers11.0%26.2%Indirect bidders took 78.9% of the competitive bids acceptedIndirect bidders 78.9%, Direct bidders 10.0%, Primary dealers 11.0%Indirect bidders78.9%69.0%Direct bidders10.0%4.8%Primary dealers11.0%26.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders78.969.0
Direct bidders10.04.8
Primary dealers11.026.2

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$36,848,173,600
Sold$14,910,648,600
Competitive bids accepted$12,944,735,000
Non-competitive bids accepted$55,305,700
Federal Reserve (SOMA) add-on$1,910,607,900
Foreign and international (FIMA) non-competitive$0
Real yield, %0.548
Median rate, %0.508
Low rate, %0.470
Interest rate (coupon), %0.500
Bids at the high rate filled, %91.10
Bid-to-cover ratio2.69
Indirect bidders accepted$10,219,760,000
Direct bidders accepted$1,296,000,000
Primary dealers accepted$1,428,975,000
Indirect bidders' share, % (ours)78.9
Direct bidders' share, % (ours)10.0
Primary dealers' share, % (ours)11.0
High minus median, basis points (ours)4.0
Treasury real par yield curve, 10-year point, same day, %0.57
High yield minus that point, basis points (ours)-2.2

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 ratio2.69Last 24 auctions1 of 2423 of 242.38
Bid-to-cover ratio2.69Since 10 April 200812 of 5442 of 542.48
Bid-to-cover ratio2.69All 82 since 29 January 199714 of 8268 of 822.38
High real yield0.548Last 24 auctions6 of 2418 of 240.443
High real yield0.548Since 10 April 200822 of 5432 of 540.478
High real yield0.548All 87 since 29 January 199755 of 8732 of 871.170
Indirect bidders' share78.9Last 24 auctions1 of 2423 of 2465.9
Indirect bidders' share78.9All 54 since 10 April 20081 of 5453 of 5452.2
Direct bidders' share10.0Last 24 auctions3 of 2421 of 247.6
Direct bidders' share10.0All 54 since 10 April 200815 of 5439 of 547.3
Primary dealers' share11.0Last 24 auctions24 of 240 of 2427.4
Primary dealers' share11.0All 54 since 10 April 200854 of 540 of 5439.0
High minus median, basis points4.0Last 24 auctions19 of 244 of 245.8
High minus median, basis points4.0Since 10 April 200847 of 546 of 546.6
High minus median, basis points4.0All 87 since 29 January 199763 of 8719 of 875.5

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 January 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180118_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 18 January 2018 (new issue)", https://500metrics.com/treasury/auctions/10-year-tips/2018-01-18.

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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