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2-year note auction of 26 August 2014 (new issue)

The 2-year note sold $29.002 billion at a high yield of 0.530% on , with a bid-to-cover ratio of 3.48.

Coupon
0.500%
Announced
Issued
Matures

High yield

0.530%

Median yield 0.507%

Bid-to-cover

3.48

▲ +0.26 since 28 Jul

Sold

$29.00 billion

$29 billion offered

Indirect bidders

39.8%

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 2011 to 26 August 2014; the latest at 0.530%.0.2%0.3%0.4%0.5%0.6%2011201220132014This auction, 0.530%High yield at the last 36 2-year note auctions36 auctions from 27 September 2011 to 26 August 2014; the latest at 0.530%.0.2%0.3%0.4%0.5%0.6%201320140.530%

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
0.5303.48
0.5443.22
0.5113.23
0.3923.52
0.4473.35
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.483.314 of 128 of 12
High yield0.5300.3831 of 1211 of 12
Indirect bidders' share39.823.71 of 1211 of 12
Direct bidders' share12.122.812 of 120 of 12
Primary dealers' share48.051.99 of 123 of 12
High minus median, basis points2.31.80 of 1212 of 12

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

  • Direct bidders' share: Lowest for a 2-year note since 25 June 2013 (13 auctions in between).
  • High minus median, basis points: Highest for a 2-year note since 25 June 2013 (13 auctions in between).

Who bought the 2-year note?

Primary dealers took 48.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 28 July 2014

Primary dealers took 48.0% of the competitive bids acceptedIndirect bidders 39.8%, Direct bidders 12.1%, Primary dealers 48.0%Indirect bidders39.8%27.0%Direct bidders12.1%14.3%Primary dealers48.0%58.7%Primary dealers took 48.0% of the competitive bids acceptedIndirect bidders 39.8%, Direct bidders 12.1%, Primary dealers 48.0%Indirect bidders39.8%27.0%Direct bidders12.1%14.3%Primary dealers48.0%58.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders39.827.0
Direct bidders12.114.3
Primary dealers48.058.7

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$29,000,000,000
Bids received$100,904,390,700
Sold$29,001,570,700
Competitive bids accepted$28,720,680,000
Non-competitive bids accepted$179,427,100
Federal Reserve (SOMA) add-on$1,463,600
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %0.530
Median rate, %0.507
Low rate, %0.477
Interest rate (coupon), %0.500
Bids at the high rate filled, %1.48
Bid-to-cover ratio3.48
Indirect bidders accepted$11,438,780,000
Direct bidders accepted$3,486,000,000
Primary dealers accepted$13,795,900,000
Indirect bidders' share, % (ours)39.8
Direct bidders' share, % (ours)12.1
Primary dealers' share, % (ours)48.0
High minus median, basis points (ours)2.3
Treasury par yield curve, 2-year point, same day, %0.52
High yield minus that point, basis points (ours)1.0

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 ratio3.48Last 24 auctions11 of 2413 of 243.34
Bid-to-cover ratio3.48Since 23 April 200825 of 7651 of 763.25
Bid-to-cover ratio3.48All 175 since 27 October 199926 of 175149 of 1752.63
High yield0.530Last 24 auctions1 of 2423 of 240.330
High yield0.530Since 23 April 200835 of 7641 of 760.484
High yield0.530All 409 since 23 January 1980368 of 40941 of 4095.475
Indirect bidders' share39.8Last 24 auctions1 of 2423 of 2423.2
Indirect bidders' share39.8All 76 since 23 April 200814 of 7662 of 7631.9
Direct bidders' share12.1Last 24 auctions23 of 241 of 2422.8
Direct bidders' share12.1All 76 since 23 April 200843 of 7633 of 7613.5
Primary dealers' share48.0Last 24 auctions18 of 246 of 2453.4
Primary dealers' share48.0All 76 since 23 April 200855 of 7621 of 7653.6
High minus median, basis points2.3Last 24 auctions1 of 2423 of 241.6
High minus median, basis points2.3Since 23 April 200835 of 7639 of 762.2
High minus median, basis points2.3All 409 since 23 January 1980152 of 409253 of 4092.0

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 26 August 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140826_2.pdf. Compiled by 500metrics, "2-year note auction of 26 August 2014 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2014-08-26.

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
  • U.S. Treasury, daily par yield curve rates (source). Licence: Public domain, a work of the US federal government

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