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2-year note auction of 26 March 2018 (new issue)

The 2-year note sold $35.285 billion at a high yield of 2.310% on , with a bid-to-cover ratio of 2.91.

Coupon
2.250%
Announced
Issued
Matures

High yield

2.310%

Median yield 2.276%

Bid-to-cover

2.91

▲ +0.19 since 20 Feb

Sold

$35.28 billion

$30 billion offered

Indirect bidders

44.5%

Of competitive bids accepted

The high yield was the highest for a 2-year note since 27 August 2008

High yield at each 2-year note auction, %

The high yield was the highest for a 2-year note since 27 August 200836 auctions from 23 September 2014 to 26 March 2018; the latest at 2.310%.0.0%0.5%1.0%1.5%2.0%2.5%20142015201620172018This auction, 2.310%The high yield was the highest for a 2-year note since 27 August 200836 auctions from 23 September 2014 to 26 March 2018; the latest at 2.310%.0.5%1.0%1.5%2.0%2.5%2016201720182.310%

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
2.3102.91
2.2552.72
2.0663.22
1.9222.52
1.7652.73
1.4622.88
1.3452.86
1.3953.06
1.3483.03
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.912.843 of 129 of 12
High yield2.3101.3720 of 1212 of 12
Indirect bidders' share44.549.39 of 123 of 12
Direct bidders' share14.115.27 of 125 of 12
Primary dealers' share41.336.23 of 129 of 12
High minus median, basis points3.44.59 of 123 of 12

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

Who bought the 2-year note?

Indirect bidders took 44.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 20 February 2018

Indirect bidders took 44.5% of the competitive bids acceptedIndirect bidders 44.5%, Direct bidders 14.1%, Primary dealers 41.3%Indirect bidders44.5%46.3%Direct bidders14.1%13.4%Primary dealers41.3%40.3%Indirect bidders took 44.5% of the competitive bids acceptedIndirect bidders 44.5%, Direct bidders 14.1%, Primary dealers 41.3%Indirect bidders44.5%46.3%Direct bidders14.1%13.4%Primary dealers41.3%40.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders44.546.3
Direct bidders14.113.4
Primary dealers41.340.3

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$30,000,000,000
Bids received$92,446,201,700
Sold$35,284,834,700
Competitive bids accepted$29,596,381,000
Non-competitive bids accepted$303,740,100
Federal Reserve (SOMA) add-on$5,284,713,600
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.310
Median rate, %2.276
Low rate, %1.888
Interest rate (coupon), %2.250
Bids at the high rate filled, %50.43
Bid-to-cover ratio2.91
Indirect bidders accepted$13,181,920,000
Direct bidders accepted$4,179,086,000
Primary dealers accepted$12,235,375,000
Indirect bidders' share, % (ours)44.5
Direct bidders' share, % (ours)14.1
Primary dealers' share, % (ours)41.3
High minus median, basis points (ours)3.4
Treasury par yield curve, 2-year point, same day, %2.33
High yield minus that point, basis points (ours)-2.0

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 ratio2.91Last 24 auctions4 of 2420 of 242.73
Bid-to-cover ratio2.91Since 23 April 200876 of 11235 of 1123.16
Bid-to-cover ratio2.91All 211 since 27 October 199984 of 211125 of 2112.71
High yield2.310Last 24 auctions0 of 2424 of 241.220
High yield2.310Since 23 April 20084 of 112108 of 1120.698
High yield2.310All 445 since 23 January 1980312 of 445133 of 4454.995
Indirect bidders' share44.5Last 24 auctions15 of 249 of 2446.7
Indirect bidders' share44.5All 112 since 23 April 200827 of 11285 of 11235.3
Direct bidders' share14.1Last 24 auctions13 of 2411 of 2414.5
Direct bidders' share14.1All 112 since 23 April 200857 of 11255 of 11214.4
Primary dealers' share41.3Last 24 auctions9 of 2415 of 2437.9
Primary dealers' share41.3All 112 since 23 April 200885 of 11227 of 11249.4
High minus median, basis points3.4Last 24 auctions14 of 2410 of 243.8
High minus median, basis points3.4Since 23 April 200840 of 11272 of 1122.6
High minus median, basis points3.4All 445 since 23 January 198094 of 445351 of 4452.0

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 March 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180326_3.pdf. Compiled by 500metrics, "2-year note auction of 26 March 2018 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2018-03-26.

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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