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2-year FRN auction of 24 May 2023 (reopening)

The 2-year FRN sold $22 billion at a high discount margin of 0.170% on , with a bid-to-cover ratio of 2.88.

Announced
Issued
Matures

Discount margin

0.170%

Median discount margin 0.137%

Bid-to-cover

2.88

▼ −0.16 since 26 Apr

Sold

$22.00 billion

$22 billion offered

Indirect bidders

71.9%

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 28 July 2020 to 24 May 2023; the latest at 0.170%.-0.1%0.0%0.1%0.2%0.3%2020202120222023This auction, 0.170%Discount margin at the last 36 2-year FRN auctions36 auctions from 28 July 2020 to 24 May 2023; the latest at 0.170%.-0.1%0.0%0.1%0.2%0.3%2021202220230.170%

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
0.1702.88
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

Against its own history

Against the previous 12 auctions of the 2-year FRN
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.883.087 of 125 of 12
High discount margin0.1700.1504 of 128 of 12
Indirect bidders' share71.967.31 of 1211 of 12
Direct bidders' share1.01.06 of 126 of 12
Primary dealers' share27.132.110 of 122 of 12
High minus median, basis points3.32.44 of 128 of 12

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

Who bought the 2-year FRN?

Indirect bidders took 71.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year FRN auction, 26 April 2023

Indirect bidders took 71.9% of the competitive bids acceptedIndirect bidders 71.9%, Direct bidders 1.0%, Primary dealers 27.1%Indirect bidders71.9%69.4%Direct bidders1.0%1.5%Primary dealers27.1%29.2%Indirect bidders took 71.9% of the competitive bids acceptedIndirect bidders 71.9%, Direct bidders 1.0%, Primary dealers 27.1%Indirect bidders71.9%69.4%Direct bidders1.0%1.5%Primary dealers27.1%29.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders71.969.4
Direct bidders1.01.5
Primary dealers27.129.2

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$22,000,000,000
Bids received$63,281,313,100
Sold$22,000,063,100
Competitive bids accepted$21,971,450,000
Non-competitive bids accepted$28,613,100
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
Discount margin, %0.170
Median rate, %0.137
Low rate, %0.090
Interest rate (coupon), %–
Spread, %0.169
Bids at the high rate filled, %30.52
Bid-to-cover ratio2.88
Indirect bidders accepted$15,789,404,000
Direct bidders accepted$225,000,000
Primary dealers accepted$5,957,046,000
Indirect bidders' share, % (ours)71.9
Direct bidders' share, % (ours)1.0
Primary dealers' share, % (ours)27.1
High minus median, basis points (ours)3.3

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 ratio2.88Last 24 auctions16 of 248 of 243.15
Bid-to-cover ratio2.88All 114 since 29 January 201486 of 11426 of 1143.22
High discount margin0.170Last 24 auctions4 of 2420 of 240.032
High discount margin0.170All 114 since 29 January 201424 of 11489 of 1140.072
Indirect bidders' share71.9Last 24 auctions7 of 2417 of 2467.8
Indirect bidders' share71.9All 114 since 29 January 20148 of 114106 of 11449.6
Direct bidders' share1.0Last 24 auctions13 of 2411 of 241.1
Direct bidders' share1.0All 114 since 29 January 201472 of 11442 of 1141.4
Primary dealers' share27.1Last 24 auctions17 of 247 of 2431.3
Primary dealers' share27.1All 114 since 29 January 2014106 of 1148 of 11448.0
High minus median, basis points3.3Last 24 auctions4 of 2420 of 241.6
High minus median, basis points3.3All 114 since 29 January 20148 of 114106 of 1141.0

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 24 May 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230524_2.pdf. Compiled by 500metrics, "2-year FRN auction of 24 May 2023 (reopening)", https://500metrics.com/treasury/auctions/2-year-frn/2023-05-24.

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.