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2-year note auction of 21 February 2017 (new issue)

The 2-year note sold $29.606 billion at a high yield of 1.230% on , with a bid-to-cover ratio of 2.82.

Coupon
1.125%
Announced
Issued
Matures

High yield

1.230%

Median yield 1.190%

Bid-to-cover

2.82

▲ +0.14 since 24 Jan

Sold

$29.61 billion

$26 billion offered

Indirect bidders

49.8%

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 28 October 2013 to 21 February 2017; the latest at 1.230%.0.3%0.5%0.8%1.0%1.3%1.5%20132014201520162017This auction, 1.230%High yield at the last 36 2-year note auctions36 auctions from 28 October 2013 to 21 February 2017; the latest at 1.230%.0.3%0.5%0.8%1.0%1.3%1.5%2015201620171.230%

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
1.2302.82
1.2102.68
1.2802.44
1.0852.73
0.8552.53
0.7502.65
0.7602.83
0.7602.52
0.7452.72
0.9203.00
0.8422.64
0.8772.58
0.8602.90
1.0562.80
0.9483.15
0.6903.42
0.6923.28
0.5403.30
0.5983.46
0.6033.45
0.5403.74
0.7033.21
0.5423.71
0.4253.11
0.5893.56
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.822.663 of 129 of 12
High yield1.2300.8581 of 1211 of 12
Indirect bidders' share49.846.52 of 1210 of 12
Direct bidders' share20.112.92 of 1210 of 12
Primary dealers' share30.142.39 of 123 of 12
High minus median, basis points4.03.44 of 128 of 12

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

Who bought the 2-year note?

Indirect bidders took 49.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 24 January 2017

Indirect bidders took 49.8% of the competitive bids acceptedIndirect bidders 49.8%, Direct bidders 20.1%, Primary dealers 30.1%Indirect bidders49.8%48.8%Direct bidders20.1%9.3%Primary dealers30.1%41.9%Indirect bidders took 49.8% of the competitive bids acceptedIndirect bidders 49.8%, Direct bidders 20.1%, Primary dealers 30.1%Indirect bidders49.8%48.8%Direct bidders20.1%9.3%Primary dealers30.1%41.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders49.848.8
Direct bidders20.19.3
Primary dealers30.141.9

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$26,000,000,000
Bids received$76,904,634,800
Sold$29,605,874,800
Competitive bids accepted$25,838,140,000
Non-competitive bids accepted$161,871,500
Federal Reserve (SOMA) add-on$3,605,863,300
Foreign and international (FIMA) non-competitive$0
High yield, %1.230
Median rate, %1.190
Low rate, %0.888
Interest rate (coupon), %1.125
Bids at the high rate filled, %9.92
Bid-to-cover ratio2.82
Indirect bidders accepted$12,863,740,000
Direct bidders accepted$5,190,000,000
Primary dealers accepted$7,784,400,000
Indirect bidders' share, % (ours)49.8
Direct bidders' share, % (ours)20.1
Primary dealers' share, % (ours)30.1
High minus median, basis points (ours)4.0
Treasury par yield curve, 2-year point, same day, %1.22
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 ratio2.82Last 24 auctions14 of 2410 of 242.95
Bid-to-cover ratio2.82Since 23 April 200876 of 10125 of 1013.21
Bid-to-cover ratio2.82All 200 since 27 October 199986 of 200114 of 2002.69
High yield1.230Last 24 auctions1 of 2423 of 240.755
High yield1.230Since 23 April 20089 of 10192 of 1010.603
High yield1.230All 434 since 23 January 1980341 of 43493 of 4345.105
Indirect bidders' share49.8Last 24 auctions4 of 2420 of 2445.7
Indirect bidders' share49.8All 101 since 23 April 20088 of 10193 of 10134.3
Direct bidders' share20.1Last 24 auctions3 of 2421 of 2414.6
Direct bidders' share20.1All 101 since 23 April 200823 of 10178 of 10113.8
Primary dealers' share30.1Last 24 auctions20 of 244 of 2442.2
Primary dealers' share30.1All 101 since 23 April 200894 of 1017 of 10150.8
High minus median, basis points4.0Last 24 auctions4 of 2420 of 243.2
High minus median, basis points4.0Since 23 April 200820 of 10179 of 1012.5
High minus median, basis points4.0All 434 since 23 January 198053 of 434367 of 4342.0

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 21 February 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170221_3.pdf. Compiled by 500metrics, "2-year note auction of 21 February 2017 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2017-02-21.

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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