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2-year note auction of 23 May 2017 (new issue)

The 2-year note sold $29.128 billion at a high yield of 1.316% on , with a bid-to-cover ratio of 2.90.

Coupon
1.250%
Announced
Issued
Matures

High yield

1.316%

Median yield 1.260%

Bid-to-cover

2.90

▲ +0.17 since 27 Mar

Sold

$29.13 billion

$26 billion offered

Indirect bidders

57.2%

Of competitive bids accepted

The high yield was the highest for a 2-year note since 28 October 2008

High yield at each 2-year note auction, %

The high yield was the highest for a 2-year note since 28 October 200836 auctions from 17 December 2013 to 23 May 2017; the latest at 1.316%.0.3%0.5%0.8%1.0%1.3%1.5%2014201520162017This auction, 1.316%The high yield was the highest for a 2-year note since 28 October 200836 auctions from 17 December 2013 to 23 May 2017; the latest at 1.316%.0.4%0.6%0.8%1.0%1.2%1.4%2015201620171.316%

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
1.3162.90
1.2612.73
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.902.701 of 1211 of 12
High yield1.3160.8880 of 1212 of 12
Indirect bidders' share57.246.50 of 1212 of 12
Direct bidders' share12.412.16 of 126 of 12
Primary dealers' share30.442.39 of 123 of 12
High minus median, basis points5.63.62 of 1210 of 12

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

  • Indirect bidders' share: Highest for a 2-year note since 26 January 2016 (13 auctions in between).

Who bought the 2-year note?

Indirect bidders took 57.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 27 March 2017

Indirect bidders took 57.2% of the competitive bids acceptedIndirect bidders 57.2%, Direct bidders 12.4%, Primary dealers 30.4%Indirect bidders57.2%53.6%Direct bidders12.4%10.8%Primary dealers30.4%35.7%Indirect bidders took 57.2% of the competitive bids acceptedIndirect bidders 57.2%, Direct bidders 12.4%, Primary dealers 30.4%Indirect bidders57.2%53.6%Direct bidders12.4%10.8%Primary dealers30.4%35.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders57.253.6
Direct bidders12.410.8
Primary dealers30.435.7

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$26,000,000,000
Bids received$78,623,221,000
Sold$29,127,948,000
Competitive bids accepted$25,776,462,000
Non-competitive bids accepted$123,580,600
Federal Reserve (SOMA) add-on$3,127,905,400
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %1.316
Median rate, %1.260
Low rate, %0.888
Interest rate (coupon), %1.250
Bids at the high rate filled, %49.14
Bid-to-cover ratio2.90
Indirect bidders accepted$14,731,362,000
Direct bidders accepted$3,197,000,000
Primary dealers accepted$7,848,100,000
Indirect bidders' share, % (ours)57.2
Direct bidders' share, % (ours)12.4
Primary dealers' share, % (ours)30.4
High minus median, basis points (ours)5.6
Treasury par yield curve, 2-year point, same day, %1.31
High yield minus that point, basis points (ours)0.6

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 ratio2.90Last 24 auctions10 of 2413 of 242.82
Bid-to-cover ratio2.90Since 23 April 200874 of 10328 of 1033.21
Bid-to-cover ratio2.90All 202 since 27 October 199983 of 202118 of 2022.69
High yield1.316Last 24 auctions0 of 2424 of 240.801
High yield1.316Since 23 April 20087 of 10396 of 1030.650
High yield1.316All 436 since 23 January 1980338 of 43698 of 4365.079
Indirect bidders' share57.2Last 24 auctions1 of 2423 of 2446.5
Indirect bidders' share57.2All 103 since 23 April 20082 of 103101 of 10334.4
Direct bidders' share12.4Last 24 auctions15 of 249 of 2414.5
Direct bidders' share12.4All 103 since 23 April 200859 of 10344 of 10313.8
Primary dealers' share30.4Last 24 auctions19 of 245 of 2438.4
Primary dealers' share30.4All 103 since 23 April 200895 of 1038 of 10350.8
High minus median, basis points5.6Last 24 auctions2 of 2422 of 243.4
High minus median, basis points5.6Since 23 April 20088 of 10395 of 1032.6
High minus median, basis points5.6All 436 since 23 January 198018 of 436417 of 4362.0

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 23 May 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170523_3.pdf. Compiled by 500metrics, "2-year note auction of 23 May 2017 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2017-05-23.

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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