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2-year FRN auction of 20 February 2019 (reopening)

The 2-year FRN sold $18 billion at a high discount margin of 0.149% on , with a bid-to-cover ratio of 2.70.

Announced
Issued
Matures

Discount margin

0.149%

Median discount margin 0.135%

Bid-to-cover

2.70

▼ −0.19 since 29 Jan

Sold

$18.00 billion

$18 billion offered

Indirect bidders

51.6%

Of competitive bids accepted

Discount margin at the last 36 2-year FRN auctions

Discount margin at each 2-year FRN auction, %

Discount margin at the last 36 2-year FRN auctions36 auctions from 23 March 2016 to 20 February 2019; the latest at 0.149%.0.0%0.1%0.2%0.3%2016201720182019This auction, 0.149%Discount margin at the last 36 2-year FRN auctions36 auctions from 23 March 2016 to 20 February 2019; the latest at 0.149%.0.0%0.1%0.1%0.1%2017201820190.149%

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

The 36 auctions as a table
Discount margin and bid-to-cover of the last 36 2-year FRN auctions, newest first
AuctionDiscount margin, %Bid-to-cover
0.1492.70
0.1152.89
0.1502.71
0.0502.62
0.0453.32
0.0503.06
0.0472.94
0.0432.79
0.0422.79
0.0283.26
0.0333.65
0.0492.78
0.0162.75
0.0003.38
0.0353.26
0.0353.69
0.0483.56
0.0553.46
0.0603.09
0.0603.32
0.0803.13
0.0502.99
0.0703.35
0.1093.43
0.1333.08
0.1403.16
0.1693.80
0.1693.32
0.1703.35
0.1803.09
0.1653.46
0.1743.82
0.1883.15
0.1883.35
0.1903.57
0.2403.07

Against its own history

Against the previous 12 auctions of the 2-year FRN
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.702.8411 of 121 of 12
High discount margin0.1490.0461 of 1211 of 12
Indirect bidders' share51.647.43 of 129 of 12
Direct bidders' share0.46.79 of 123 of 12
Primary dealers' share47.950.38 of 124 of 12
High minus median, basis points1.41.03 of 129 of 12

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

Who bought the 2-year FRN?

Indirect bidders took 51.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year FRN auction, 29 January 2019

Indirect bidders took 51.6% of the competitive bids acceptedIndirect bidders 51.6%, Direct bidders 0.4%, Primary dealers 47.9%Indirect bidders51.6%47.7%Direct bidders0.4%0.3%Primary dealers47.9%52.1%Indirect bidders took 51.6% of the competitive bids acceptedIndirect bidders 51.6%, Direct bidders 0.4%, Primary dealers 47.9%Indirect bidders51.6%47.7%Direct bidders0.4%0.3%Primary dealers47.9%52.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders51.647.7
Direct bidders0.40.3
Primary dealers47.952.1

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as1-Year 11-Month, reopening
Offering amount$18,000,000,000
Bids received$48,630,956,600
Sold$18,000,006,600
Competitive bids accepted$17,986,050,000
Non-competitive bids accepted$13,956,600
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
Discount margin, %0.149
Median rate, %0.135
Low rate, %0.100
Interest rate (coupon), %–
Spread, %0.115
Bids at the high rate filled, %41.80
Bid-to-cover ratio2.70
Indirect bidders accepted$9,287,000,000
Direct bidders accepted$75,000,000
Primary dealers accepted$8,624,050,000
Indirect bidders' share, % (ours)51.6
Direct bidders' share, % (ours)0.4
Primary dealers' share, % (ours)47.9
High minus median, basis points (ours)1.4

Treasury's own files: announcement (PDF) · results (PDF)

How to read this result

The high discount margin 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.

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 2-year FRN auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.70Last 24 auctions23 of 241 of 243.11
Bid-to-cover ratio2.70All 61 since 29 January 201460 of 611 of 613.43
High discount margin0.149Last 24 auctions1 of 2423 of 240.050
High discount margin0.149All 61 since 29 January 201416 of 6145 of 610.070
Indirect bidders' share51.6Last 24 auctions8 of 2416 of 2449.0
Indirect bidders' share51.6All 61 since 29 January 201416 of 6145 of 6146.6
Direct bidders' share0.4Last 24 auctions14 of 2410 of 240.8
Direct bidders' share0.4All 61 since 29 January 201443 of 6118 of 611.9
Primary dealers' share47.9Last 24 auctions14 of 2410 of 2449.3
Primary dealers' share47.9All 61 since 29 January 201442 of 6119 of 6150.9
High minus median, basis points1.4Last 24 auctions4 of 2420 of 240.8
High minus median, basis points1.4All 61 since 29 January 201413 of 6147 of 610.9

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.

How to cite this

U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 20 February 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20190220_1.pdf. Compiled by 500metrics, "2-year FRN auction of 20 February 2019 (reopening)", https://500metrics.com/treasury/auctions/2-year-frn/2019-02-20.

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

Our text and compilation: CC BY 4.0. How to reuse and cite this page.