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2-year note auction of 25 August 2009 (new issue)

The 2-year note sold $43.264 billion at a high yield of 1.119% on , with a bid-to-cover ratio of 2.68.

Coupon
1.000%
Announced
Issued
Matures

High yield

1.119%

Median yield 1.060%

Bid-to-cover

2.68

▼ −0.07 since 28 Jul

Sold

$43.26 billion

$42 billion offered

Indirect bidders

49.4%

Of competitive bids accepted

High yield at the last 36 2-year note auctions

High yield at each 2-year note auction, %

High yield at the last 36 2-year note auctions36 auctions from 27 September 2006 to 25 August 2009; the latest at 1.119%.0.0%2.0%4.0%6.0%2006200720082009This auction, 1.119%High yield at the last 36 2-year note auctions36 auctions from 27 September 2006 to 25 August 2009; the latest at 1.119%.0.0%1.0%2.0%3.0%4.0%200820091.119%

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
1.1192.68
1.0802.75
1.1513.19
0.9402.94
0.9492.72
0.9492.71
0.9612.63
0.9252.69
0.9222.13
1.2692.08
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.682.666 of 126 of 12
High yield1.1191.0205 of 127 of 12
Indirect bidders' share49.433.83 of 129 of 12
Direct bidders' share3.52.54 of 128 of 12
Primary dealers' share47.163.19 of 123 of 12
High minus median, basis points5.95.24 of 127 of 12

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

Who bought the 2-year note?

Indirect bidders took 49.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 28 July 2009

Indirect bidders took 49.4% of the competitive bids acceptedIndirect bidders 49.4%, Direct bidders 3.5%, Primary dealers 47.1%Indirect bidders49.4%33.0%Direct bidders3.5%4.1%Primary dealers47.1%62.9%Indirect bidders took 49.4% of the competitive bids acceptedIndirect bidders 49.4%, Direct bidders 3.5%, Primary dealers 47.1%Indirect bidders49.4%33.0%Direct bidders3.5%4.1%Primary dealers47.1%62.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders49.433.0
Direct bidders3.54.1
Primary dealers47.162.9

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$42,000,000,000
Bids received$113,918,490,300
Sold$43,263,984,300
Competitive bids accepted$41,419,804,000
Non-competitive bids accepted$530,202,500
Federal Reserve (SOMA) add-on$1,263,977,800
Foreign and international (FIMA) non-competitive$50,000,000
High yield, %1.119
Median rate, %1.060
Low rate, %0.950
Interest rate (coupon), %1.000
Bids at the high rate filled, %92.32
Bid-to-cover ratio2.68
Indirect bidders accepted$20,451,844,000
Direct bidders accepted$1,440,000,000
Primary dealers accepted$19,527,960,000
Indirect bidders' share, % (ours)49.4
Direct bidders' share, % (ours)3.5
Primary dealers' share, % (ours)47.1
High minus median, basis points (ours)5.9
Treasury par yield curve, 2-year point, same day, %1.05
High yield minus that point, basis points (ours)6.9

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 ratio2.68Last 24 auctions9 of 2415 of 242.46
Bid-to-cover ratio2.68Since 23 April 20086 of 1610 of 162.56
Bid-to-cover ratio2.68All 115 since 27 October 199925 of 11590 of 1152.28
High yield1.119Last 24 auctions17 of 247 of 242.080
High yield1.119Since 23 April 20089 of 167 of 161.210
High yield1.119All 349 since 23 January 1980342 of 3497 of 3495.955
Indirect bidders' share49.4All 16 since 23 April 20083 of 1613 of 1633.3
Direct bidders' share3.5All 16 since 23 April 20084 of 1612 of 161.8
Primary dealers' share47.1All 16 since 23 April 200813 of 163 of 1663.5
High minus median, basis points5.9Last 24 auctions4 of 2419 of 243.9
High minus median, basis points5.9Since 23 April 20084 of 1611 of 165.0
High minus median, basis points5.9All 349 since 23 January 198013 of 349334 of 3492.0

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 25 August 2009. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/R_20090825_3.pdf. Compiled by 500metrics, "2-year note auction of 25 August 2009 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2009-08-25.

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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