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2-year note auction of 25 March 2014 (new issue)

The 2-year note sold $32 billion at a high yield of 0.469% on , with a bid-to-cover ratio of 3.20.

Coupon
0.375%
Announced
Issued
Matures

High yield

0.469%

Median yield 0.450%

Bid-to-cover

3.20

▼ −0.40 since 25 Feb

Sold

$32.00 billion

$32 billion offered

Indirect bidders

40.9%

Of competitive bids accepted

The high yield was the highest for a 2-year note since 24 May 2011

High yield at each 2-year note auction, %

The high yield was the highest for a 2-year note since 24 May 201136 auctions from 26 April 2011 to 25 March 2014; the latest at 0.469%.0.2%0.4%0.6%0.8%2011201220132014This auction, 0.469%The high yield was the highest for a 2-year note since 24 May 201136 auctions from 26 April 2011 to 25 March 2014; the latest at 0.469%.0.2%0.3%0.4%0.5%2012201320140.469%

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
0.4693.20
0.3403.60
0.3803.30
0.3453.77
0.3003.54
0.3233.32
0.3483.09
0.3863.21
0.3363.08
0.4303.05
0.2833.04
0.2333.63
0.2553.27
0.2573.33
0.2883.77
0.2453.59
0.2704.07
0.2954.02
0.2733.60
0.2733.94
0.2204.00
0.3133.62
0.3003.95
0.2703.76
0.3403.69
0.3103.54
0.2503.75
0.2403.45
0.2804.07
0.2813.64
0.2493.76
0.2223.44
0.4173.14
0.3953.08
0.5603.46
0.6733.06

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.203.288 of 124 of 12
High yield0.4690.3380 of 1212 of 12
Indirect bidders' share40.923.20 of 1212 of 12
Direct bidders' share21.522.18 of 124 of 12
Primary dealers' share37.552.412 of 120 of 12
High minus median, basis points1.91.85 of 127 of 12

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

  • Indirect bidders' share: Highest for a 2-year note since 21 November 2011 (27 auctions in between).
  • Primary dealers' share: Lowest for a 2-year note since 23 October 2012 (16 auctions in between).

Who bought the 2-year note?

Indirect bidders took 40.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 25 February 2014

Indirect bidders took 40.9% of the competitive bids acceptedIndirect bidders 40.9%, Direct bidders 21.5%, Primary dealers 37.5%Indirect bidders40.9%34.3%Direct bidders21.5%19.3%Primary dealers37.5%46.4%Indirect bidders took 40.9% of the competitive bids acceptedIndirect bidders 40.9%, Direct bidders 21.5%, Primary dealers 37.5%Indirect bidders40.9%34.3%Direct bidders21.5%19.3%Primary dealers37.5%46.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders40.934.3
Direct bidders21.519.3
Primary dealers37.546.4

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$32,000,000,000
Bids received$102,388,938,000
Sold$32,000,113,000
Competitive bids accepted$31,745,103,000
Non-competitive bids accepted$155,010,000
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %0.469
Median rate, %0.450
Low rate, %0.415
Interest rate (coupon), %0.375
Bids at the high rate filled, %89.97
Bid-to-cover ratio3.20
Indirect bidders accepted$12,994,628,000
Direct bidders accepted$6,836,000,000
Primary dealers accepted$11,914,475,000
Indirect bidders' share, % (ours)40.9
Direct bidders' share, % (ours)21.5
Primary dealers' share, % (ours)37.5
High minus median, basis points (ours)1.9
Treasury par yield curve, 2-year point, same day, %0.47
High yield minus that point, basis points (ours)-0.1

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 ratio3.20Last 24 auctions20 of 244 of 243.60
Bid-to-cover ratio3.20Since 23 April 200838 of 7133 of 713.27
Bid-to-cover ratio3.20All 170 since 27 October 199940 of 170130 of 1702.62
High yield0.469Last 24 auctions0 of 2424 of 240.298
High yield0.469Since 23 April 200836 of 7135 of 710.498
High yield0.469All 404 since 23 January 1980369 of 40435 of 4045.498
Indirect bidders' share40.9Last 24 auctions0 of 2424 of 2427.8
Indirect bidders' share40.9All 71 since 23 April 200812 of 7159 of 7132.8
Direct bidders' share21.5Last 24 auctions13 of 2411 of 2421.8
Direct bidders' share21.5All 71 since 23 April 200814 of 7157 of 7113.3
Primary dealers' share37.5Last 24 auctions23 of 241 of 2453.6
Primary dealers' share37.5All 71 since 23 April 200867 of 714 of 7153.2
High minus median, basis points1.9Last 24 auctions6 of 2417 of 241.4
High minus median, basis points1.9Since 23 April 200847 of 7123 of 712.3
High minus median, basis points1.9All 404 since 23 January 1980238 of 404159 of 4042.0

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 March 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140325_2.pdf. Compiled by 500metrics, "2-year note auction of 25 March 2014 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2014-03-25.

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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