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2-year FRN auction of 26 April 2023 (new issue)

The 2-year FRN sold $26.342 billion at a high discount margin of 0.169% on , with a bid-to-cover ratio of 3.04.

Announced
Issued
Matures

Discount margin

0.169%

Median discount margin 0.149%

Bid-to-cover

3.04

▼ −0.47 since 29 Mar

Sold

$26.34 billion

$24 billion offered

Indirect bidders

69.4%

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 24 June 2020 to 26 April 2023; the latest at 0.169%.-0.1%0.0%0.1%0.2%0.3%2020202120222023This auction, 0.169%Discount margin at the last 36 2-year FRN auctions36 auctions from 24 June 2020 to 26 April 2023; the latest at 0.169%.-0.1%0.0%0.1%0.2%0.3%2021202220230.169%

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
0.1693.04
0.1903.51
0.1603.29
0.2002.80
0.2393.40
0.2202.45
0.1402.65
0.0922.84
0.0902.57
0.0373.13
-0.0105.32
-0.0033.49
0.0003.22
-0.0752.51
-0.0553.75
-0.0503.22
-0.0153.34
0.0304.03
0.0382.80
0.0352.99
0.0262.84
0.0263.17
0.0293.04
0.0303.23
0.0303.03
0.0342.91
0.0353.25
0.0452.88
0.0492.82
0.0602.83
0.0532.90
0.0553.22
0.0582.88
0.0552.85
0.0553.29
0.0803.16

Against its own history

Against the previous 12 auctions of the 2-year FRN
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.043.187 of 125 of 12
High discount margin0.1690.1164 of 128 of 12
Indirect bidders' share69.467.33 of 129 of 12
Direct bidders' share1.51.04 of 128 of 12
Primary dealers' share29.232.19 of 123 of 12
High minus median, basis points2.02.47 of 124 of 12

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

Who bought the 2-year FRN?

Indirect bidders took 69.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year FRN auction, 29 March 2023

Indirect bidders took 69.4% of the competitive bids acceptedIndirect bidders 69.4%, Direct bidders 1.5%, Primary dealers 29.2%Indirect bidders69.4%68.3%Direct bidders1.5%0.0%Primary dealers29.2%31.7%Indirect bidders took 69.4% of the competitive bids acceptedIndirect bidders 69.4%, Direct bidders 1.5%, Primary dealers 29.2%Indirect bidders69.4%68.3%Direct bidders1.5%0.0%Primary dealers29.2%31.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders69.468.3
Direct bidders1.50.0
Primary dealers29.231.7

About these figures

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

Treasury's published result

FieldValue
Offered as2-Year, new issue
Offering amount$24,000,000,000
Bids received$75,314,706,900
Sold$26,342,256,900
Competitive bids accepted$23,940,550,000
Non-competitive bids accepted$59,507,200
Federal Reserve (SOMA) add-on$2,342,199,700
Foreign and international (FIMA) non-competitive$0
Discount margin, %0.169
Median rate, %0.149
Low rate, %0.001
Interest rate (coupon), %–
Spread, %0.169
Bids at the high rate filled, %24.34
Bid-to-cover ratio3.04
Indirect bidders accepted$16,610,000,000
Direct bidders accepted$350,000,000
Primary dealers accepted$6,980,550,000
Indirect bidders' share, % (ours)69.4
Direct bidders' share, % (ours)1.5
Primary dealers' share, % (ours)29.2
High minus median, basis points (ours)2.0

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 ratio3.04Last 24 auctions13 of 2410 of 243.15
Bid-to-cover ratio3.04All 113 since 29 January 201473 of 11339 of 1133.22
High discount margin0.169Last 24 auctions4 of 2420 of 240.030
High discount margin0.169All 113 since 29 January 201425 of 11386 of 1130.070
Indirect bidders' share69.4Last 24 auctions8 of 2416 of 2467.3
Indirect bidders' share69.4All 113 since 29 January 20149 of 113104 of 11349.6
Direct bidders' share1.5Last 24 auctions7 of 2417 of 241.1
Direct bidders' share1.5All 113 since 29 January 201455 of 11358 of 1131.3
Primary dealers' share29.2Last 24 auctions16 of 248 of 2431.8
Primary dealers' share29.2All 113 since 29 January 2014104 of 1139 of 11348.0
High minus median, basis points2.0Last 24 auctions8 of 2414 of 241.2
High minus median, basis points2.0All 113 since 29 January 201418 of 11390 of 1131.0

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 26 April 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230426_2.pdf. Compiled by 500metrics, "2-year FRN auction of 26 April 2023 (new issue)", https://500metrics.com/treasury/auctions/2-year-frn/2023-04-26.

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.