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2-year note auction of 22 May 2018 (new issue)

The 2-year note sold $38.732 billion at a high yield of 2.590% on , with a bid-to-cover ratio of 2.88.

Coupon
2.500%
Announced
Issued
Matures

High yield

2.590%

Median yield 2.560%

Bid-to-cover

2.88

▲ +0.27 since 24 Apr

Sold

$38.73 billion

$33 billion offered

Indirect bidders

39.3%

Of competitive bids accepted

The high yield was the highest for a 2-year note since 23 July 2008

High yield at each 2-year note auction, %

The high yield was the highest for a 2-year note since 23 July 200836 auctions from 24 November 2014 to 22 May 2018; the latest at 2.590%.0.0%1.0%2.0%3.0%2015201620172018This auction, 2.590%The high yield was the highest for a 2-year note since 23 July 200836 auctions from 24 November 2014 to 22 May 2018; the latest at 2.590%.0.5%1.0%1.5%2.0%2.5%3.0%2016201720182.590%

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
2.5902.88
2.4982.61
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.882.875 of 126 of 12
High yield2.5901.6140 of 1212 of 12
Indirect bidders' share39.346.112 of 120 of 12
Direct bidders' share15.314.96 of 126 of 12
Primary dealers' share45.438.51 of 1211 of 12
High minus median, basis points3.04.48 of 124 of 12

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

  • Indirect bidders' share: Lowest for a 2-year note since 27 December 2016 (14 auctions in between).

Who bought the 2-year note?

Primary dealers took 45.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 24 April 2018

Primary dealers took 45.4% of the competitive bids acceptedIndirect bidders 39.3%, Direct bidders 15.3%, Primary dealers 45.4%Indirect bidders39.3%41.6%Direct bidders15.3%15.3%Primary dealers45.4%43.1%Primary dealers took 45.4% of the competitive bids acceptedIndirect bidders 39.3%, Direct bidders 15.3%, Primary dealers 45.4%Indirect bidders39.3%41.6%Direct bidders15.3%15.3%Primary dealers45.4%43.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders39.341.6
Direct bidders15.315.3
Primary dealers45.443.1

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$33,000,000,000
Bids received$100,684,532,100
Sold$38,732,492,100
Competitive bids accepted$32,429,810,000
Non-competitive bids accepted$420,191,900
Federal Reserve (SOMA) add-on$5,732,490,200
Foreign and international (FIMA) non-competitive$150,000,000
High yield, %2.590
Median rate, %2.560
Low rate, %2.200
Interest rate (coupon), %2.500
Bids at the high rate filled, %79.53
Bid-to-cover ratio2.88
Indirect bidders accepted$12,742,675,000
Direct bidders accepted$4,975,000,000
Primary dealers accepted$14,712,135,000
Indirect bidders' share, % (ours)39.3
Direct bidders' share, % (ours)15.3
Primary dealers' share, % (ours)45.4
High minus median, basis points (ours)3.0
Treasury par yield curve, 2-year point, same day, %2.59
High yield minus that point, basis points (ours)0.0

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 ratio2.88Last 24 auctions6 of 2417 of 242.73
Bid-to-cover ratio2.88Since 23 April 200880 of 11433 of 1143.16
Bid-to-cover ratio2.88All 213 since 27 October 199989 of 213123 of 2132.71
High yield2.590Last 24 auctions0 of 2424 of 241.270
High yield2.590Since 23 April 20083 of 114111 of 1140.720
High yield2.590All 447 since 23 January 1980308 of 447138 of 4474.975
Indirect bidders' share39.3Last 24 auctions19 of 245 of 2446.1
Indirect bidders' share39.3All 114 since 23 April 200842 of 11472 of 11435.7
Direct bidders' share15.3Last 24 auctions10 of 2414 of 2414.5
Direct bidders' share15.3All 114 since 23 April 200848 of 11466 of 11414.4
Primary dealers' share45.4Last 24 auctions5 of 2419 of 2440.7
Primary dealers' share45.4All 114 since 23 April 200873 of 11441 of 11449.0
High minus median, basis points3.0Last 24 auctions16 of 248 of 243.8
High minus median, basis points3.0Since 23 April 200848 of 11462 of 1142.6
High minus median, basis points3.0All 447 since 23 January 1980103 of 447304 of 4472.0

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 22 May 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180522_3.pdf. Compiled by 500metrics, "2-year note auction of 22 May 2018 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2018-05-22.

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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