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2-year note auction of 28 October 2008 (new issue)

The 2-year note sold $35.507 billion at a high yield of 1.600% on , with a bid-to-cover ratio of 2.49.

Coupon
1.500%
Announced
Issued
Matures

High yield

1.600%

Median yield 1.575%

Bid-to-cover

2.49

▲ +0.28 since 24 Sep

Sold

$35.51 billion

$34 billion offered

Indirect bidders

42.0%

Of competitive bids accepted

The high yield was the lowest for a 2-year note since 24 March 2004

High yield at each 2-year note auction, %

The high yield was the lowest for a 2-year note since 24 March 200436 auctions from 23 November 2005 to 28 October 2008; the latest at 1.600%.1.0%2.0%3.0%4.0%5.0%6.0%200620072008This auction, 1.600%The high yield was the lowest for a 2-year note since 24 March 200436 auctions from 23 November 2005 to 28 October 2008; the latest at 1.600%.1.0%2.0%3.0%4.0%5.0%200720081.600%

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

The 36 auctions as a table
High yield and bid-to-cover of the last 36 2-year note auctions, newest first
AuctionHigh yield, %Bid-to-cover
1.6002.49
2.1152.21
2.3802.18
2.8202.42
2.9222.64
2.6402.28
2.2252.21
1.7612.44
2.0452.14
2.2372.33
3.2852.23
3.1592.21
3.7232.86
4.0003.29
4.1153.97
4.7352.59
4.9062.80
4.8862.53
4.6062.93
4.5142.81
4.8303.04
4.9303.03
4.7652.46
4.6923.02
4.8942.91
4.6602.77
4.9212.32
5.0902.03
5.2392.28
4.9332.58
4.9752.05
4.7302.12
4.6892.24
4.4272.11
4.4042.42
4.3492.16

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.492.262 of 1210 of 12
High yield1.6002.51012 of 120 of 12
Indirect bidders' share42.029.00 of 66 of 6
Direct bidders' share0.11.06 of 60 of 6
Primary dealers' share57.967.66 of 60 of 6
High minus median, basis points2.53.78 of 123 of 12

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

Who bought the 2-year note?

Primary dealers took 57.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 24 September 2008

Primary dealers took 57.9% of the competitive bids acceptedIndirect bidders 42.0%, Direct bidders 0.1%, Primary dealers 57.9%Indirect bidders42.0%27.9%Direct bidders0.1%8.9%Primary dealers57.9%63.2%Primary dealers took 57.9% of the competitive bids acceptedIndirect bidders 42.0%, Direct bidders 0.1%, Primary dealers 57.9%Indirect bidders42.0%27.9%Direct bidders0.1%8.9%Primary dealers57.9%63.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders42.027.9
Direct bidders0.18.9
Primary dealers57.963.2

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$34,000,000,000
Bids received$86,115,235,800
Sold$35,506,961,300
Competitive bids accepted$33,446,785,500
Non-competitive bids accepted$528,747,800
Federal Reserve (SOMA) add-on$1,506,428,000
Foreign and international (FIMA) non-competitive$25,000,000
High yield, %1.600
Median rate, %1.575
Low rate, %1.400
Interest rate (coupon), %1.500
Bids at the high rate filled, %93.81
Bid-to-cover ratio2.49
Indirect bidders accepted$14,041,305,500
Direct bidders accepted$50,000,000
Primary dealers accepted$19,355,480,000
Indirect bidders' share, % (ours)42.0
Direct bidders' share, % (ours)0.1
Primary dealers' share, % (ours)57.9
High minus median, basis points (ours)2.5
Treasury par yield curve, 2-year point, same day, %1.65
High yield minus that point, basis points (ours)-5.0

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

How to read this result

The high 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 par yield curve comparison sets the high yield against Treasury's own par yield curve on the auction day, at the point nearest this security's maturity (2-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 2-year note auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.49Last 24 auctions13 of 2411 of 242.56
Bid-to-cover ratio2.49Since 23 April 20081 of 65 of 62.24
Bid-to-cover ratio2.49All 105 since 27 October 199932 of 10573 of 1052.26
High yield1.600Last 24 auctions24 of 240 of 243.862
High yield1.600Since 23 April 20086 of 60 of 62.510
High yield1.600All 339 since 23 January 1980334 of 3395 of 3396.027
Indirect bidders' share42.0All 6 since 23 April 20080 of 66 of 629.0
Direct bidders' share0.1All 6 since 23 April 20086 of 60 of 61.0
Primary dealers' share57.9All 6 since 23 April 20086 of 60 of 667.6
High minus median, basis points2.5Last 24 auctions9 of 2412 of 242.4
High minus median, basis points2.5Since 23 April 20085 of 61 of 65.0
High minus median, basis points2.5All 339 since 23 January 1980108 of 339222 of 3392.0

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.

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 28 October 2008. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2008/R_20081028_2.pdf. Compiled by 500metrics, "2-year note auction of 28 October 2008 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2008-10-28.

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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