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10-year TIPS auction of 17 September 2020 (reopening)

The 10-year TIPS sold $13.643 billion at a high real yield of -0.966% on , with a bid-to-cover ratio of 2.65.

Coupon
0.125%
Announced
Issued
Matures

Real yield

-0.966%

Median real yield -1.020%

Bid-to-cover

2.65

▲ +0.41 since 23 Jul

Sold

$13.64 billion

$12 billion offered

Indirect bidders

68.7%

Of competitive bids accepted

The high real yield was the lowest for a 10-year TIPS of all 103 earlier auctions we hold

Real yield at each 10-year TIPS auction, %

The high real yield was the lowest for a 10-year TIPS of all 103 earlier auctions we hold36 auctions from 20 November 2014 to 17 September 2020; the latest at -0.966%.-1.0%0.0%1.0%2.0%201520162017201820192020This auction, -0.966%The high real yield was the lowest for a 10-year TIPS of all 103 earlier auctions we hold36 auctions from 20 November 2014 to 17 September 2020; the latest at -0.966%.-1.0%0.0%1.0%2.0%2017201820192020-0.966%

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
-0.9662.65
-0.9302.24
-0.4702.39
0.6802.32
0.0362.33
0.1492.40
0.1742.41
0.2822.28
0.5673.07
0.5782.43
0.9192.42
1.1092.59
0.9102.57
0.7622.22
0.9342.42
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

Against its own history

Against the previous 12 auctions of the 10-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.652.401 of 1211 of 12
High real yield-0.9660.42412 of 120 of 12
Indirect bidders' share68.767.35 of 127 of 12
Direct bidders' share15.013.25 of 127 of 12
Primary dealers' share16.317.49 of 123 of 12
High minus median, basis points5.45.67 of 125 of 12

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

Who bought the 10-year TIPS?

Indirect bidders took 68.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 10-year TIPS auction, 23 July 2020

Indirect bidders took 68.7% of the competitive bids acceptedIndirect bidders 68.7%, Direct bidders 15.0%, Primary dealers 16.3%Indirect bidders68.7%72.3%Direct bidders15.0%9.9%Primary dealers16.3%17.8%Indirect bidders took 68.7% of the competitive bids acceptedIndirect bidders 68.7%, Direct bidders 15.0%, Primary dealers 16.3%Indirect bidders68.7%72.3%Direct bidders15.0%9.9%Primary dealers16.3%17.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders68.772.3
Direct bidders15.09.9
Primary dealers16.317.8

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$12,000,000,000
Bids received$33,444,838,900
Sold$13,642,870,400
Competitive bids accepted$11,980,266,500
Non-competitive bids accepted$19,746,800
Federal Reserve (SOMA) add-on$1,642,857,100
Foreign and international (FIMA) non-competitive$0
Real yield, %-0.966
Median rate, %-1.020
Low rate, %-1.082
Interest rate (coupon), %0.125
Bids at the high rate filled, %43.79
Bid-to-cover ratio2.65
Indirect bidders accepted$8,226,307,500
Direct bidders accepted$1,802,000,000
Primary dealers accepted$1,951,959,000
Indirect bidders' share, % (ours)68.7
Direct bidders' share, % (ours)15.0
Primary dealers' share, % (ours)16.3
High minus median, basis points (ours)5.4
Treasury real par yield curve, 10-year point, same day, %-0.97
High yield minus that point, basis points (ours)0.4

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 ratio2.65Last 24 auctions2 of 2422 of 242.42
Bid-to-cover ratio2.65Since 10 April 200815 of 7054 of 702.44
Bid-to-cover ratio2.65All 98 since 29 January 199717 of 9880 of 982.39
High real yield-0.966Last 24 auctions24 of 240 of 240.478
High real yield-0.966Since 10 April 200870 of 700 of 700.494
High real yield-0.966All 103 since 29 January 1997103 of 1030 of 1030.764
Indirect bidders' share68.7Last 24 auctions12 of 2412 of 2468.6
Indirect bidders' share68.7All 70 since 10 April 200814 of 7056 of 7057.4
Direct bidders' share15.0Last 24 auctions8 of 2416 of 2410.0
Direct bidders' share15.0All 70 since 10 April 200812 of 7058 of 708.0
Primary dealers' share16.3Last 24 auctions18 of 246 of 2418.9
Primary dealers' share16.3All 70 since 10 April 200864 of 706 of 7032.5
High minus median, basis points5.4Last 24 auctions14 of 249 of 245.6
High minus median, basis points5.4Since 10 April 200844 of 7024 of 706.2
High minus median, basis points5.4All 103 since 29 January 199754 of 10347 of 1035.5

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 17 September 2020. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20200917_3.pdf. Compiled by 500metrics, "10-year TIPS auction of 17 September 2020 (reopening)", https://500metrics.com/treasury/auctions/10-year-tips/2020-09-17.

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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