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10-year TIPS auction of 22 March 2018 (reopening)

The 10-year TIPS sold $11 billion at a high real yield of 0.764% on , with a bid-to-cover ratio of 2.56.

Coupon
0.500%
Announced
Issued
Matures

Real yield

0.764%

Median real yield 0.710%

Bid-to-cover

2.56

▼ −0.13 since 18 Jan

Sold

$11.00 billion

$11 billion offered

Indirect bidders

61.4%

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 17 May 2012 to 22 March 2018; the latest at 0.764%.-1.0%-0.5%0.0%0.5%1.0%2012201320142015201620172018This auction, 0.764%The high real yield was the highest for a 10-year TIPS since 19 May 201136 auctions from 17 May 2012 to 22 March 2018; the latest at 0.764%.0.0%0.2%0.4%0.6%0.8%20152016201720180.764%

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
0.7642.56
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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.562.392 of 129 of 12
High real yield0.7640.4280 of 1212 of 12
Indirect bidders' share61.469.411 of 121 of 12
Direct bidders' share16.77.40 of 1212 of 12
Primary dealers' share21.925.07 of 125 of 12
High minus median, basis points5.45.88 of 124 of 12

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

  • Direct bidders' share: Highest for a 10-year TIPS since 21 November 2013 (25 auctions in between).

Who bought the 10-year TIPS?

Indirect bidders took 61.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 18 January 2018

Indirect bidders took 61.4% of the competitive bids acceptedIndirect bidders 61.4%, Direct bidders 16.7%, Primary dealers 21.9%Indirect bidders61.4%78.9%Direct bidders16.7%10.0%Primary dealers21.9%11.0%Indirect bidders took 61.4% of the competitive bids acceptedIndirect bidders 61.4%, Direct bidders 16.7%, Primary dealers 21.9%Indirect bidders61.4%78.9%Direct bidders16.7%10.0%Primary dealers21.9%11.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders61.478.9
Direct bidders16.710.0
Primary dealers21.911.0

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$11,000,000,000
Bids received$28,118,982,700
Sold$11,000,002,700
Competitive bids accepted$10,983,900,000
Non-competitive bids accepted$16,102,700
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
Real yield, %0.764
Median rate, %0.710
Low rate, %0.660
Interest rate (coupon), %0.500
Bids at the high rate filled, %94.40
Bid-to-cover ratio2.56
Indirect bidders accepted$6,744,260,000
Direct bidders accepted$1,833,000,000
Primary dealers accepted$2,406,640,000
Indirect bidders' share, % (ours)61.4
Direct bidders' share, % (ours)16.7
Primary dealers' share, % (ours)21.9
High minus median, basis points (ours)5.4
Treasury real par yield curve, 10-year point, same day, %0.75
High yield minus that point, basis points (ours)1.4

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 ratio2.56Last 24 auctions4 of 2419 of 242.39
Bid-to-cover ratio2.56Since 10 April 200822 of 5532 of 552.48
Bid-to-cover ratio2.56All 83 since 29 January 199724 of 8358 of 832.38
High real yield0.764Last 24 auctions0 of 2424 of 240.443
High real yield0.764Since 10 April 200814 of 5541 of 550.489
High real yield0.764All 88 since 29 January 199747 of 8841 of 881.094
Indirect bidders' share61.4Last 24 auctions19 of 245 of 2466.7
Indirect bidders' share61.4All 55 since 10 April 200819 of 5536 of 5552.5
Direct bidders' share16.7Last 24 auctions0 of 2424 of 247.6
Direct bidders' share16.7All 55 since 10 April 20083 of 5552 of 557.5
Primary dealers' share21.9Last 24 auctions19 of 245 of 2427.2
Primary dealers' share21.9All 55 since 10 April 200850 of 555 of 5538.5
High minus median, basis points5.4Last 24 auctions15 of 249 of 245.8
High minus median, basis points5.4Since 10 April 200835 of 5519 of 556.5
High minus median, basis points5.4All 88 since 29 January 199745 of 8842 of 885.5

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 22 March 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180322_1.pdf. Compiled by 500metrics, "10-year TIPS auction of 22 March 2018 (reopening)", https://500metrics.com/treasury/auctions/10-year-tips/2018-03-22.

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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