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2-year note auction of 27 August 2018 (new issue)

The 2-year note sold $38.537 billion at a high yield of 2.655% on , with a bid-to-cover ratio of 2.89.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.655%

Median yield 2.625%

Bid-to-cover

2.89

▼ −0.03 since 24 Jul

Sold

$38.54 billion

$36 billion offered

Indirect bidders

43.8%

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 24 February 2015 to 27 August 2018; the latest at 2.655%.0.0%1.0%2.0%3.0%2015201620172018This auction, 2.655%High yield at the last 36 2-year note auctions36 auctions from 24 February 2015 to 27 August 2018; the latest at 2.655%.0.5%1.0%1.5%2.0%2.5%3.0%2016201720182.655%

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
2.6552.89
2.6572.92
2.5382.73
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.892.874 of 128 of 12
High yield2.6552.1601 of 1211 of 12
Indirect bidders' share43.844.37 of 125 of 12
Direct bidders' share13.715.310 of 122 of 12
Primary dealers' share42.541.23 of 129 of 12
High minus median, basis points3.03.67 of 124 of 12

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

Who bought the 2-year note?

Indirect bidders took 43.8% of the competitive bids accepted

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

Indirect bidders took 43.8% of the competitive bids acceptedIndirect bidders 43.8%, Direct bidders 13.7%, Primary dealers 42.5%Indirect bidders43.8%45.0%Direct bidders13.7%14.3%Primary dealers42.5%40.7%Indirect bidders took 43.8% of the competitive bids acceptedIndirect bidders 43.8%, Direct bidders 13.7%, Primary dealers 42.5%Indirect bidders43.8%45.0%Direct bidders13.7%14.3%Primary dealers42.5%40.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders43.845.0
Direct bidders13.714.3
Primary dealers42.540.7

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$36,000,000,000
Bids received$106,720,692,100
Sold$38,537,491,100
Competitive bids accepted$35,536,266,000
Non-competitive bids accepted$363,923,900
Federal Reserve (SOMA) add-on$2,537,301,200
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.655
Median rate, %2.625
Low rate, %1.888
Interest rate (coupon), %2.625
Bids at the high rate filled, %42.73
Bid-to-cover ratio2.89
Indirect bidders accepted$15,572,871,000
Direct bidders accepted$4,861,000,000
Primary dealers accepted$15,102,395,000
Indirect bidders' share, % (ours)43.8
Direct bidders' share, % (ours)13.7
Primary dealers' share, % (ours)42.5
High minus median, basis points (ours)3.0
Treasury par yield curve, 2-year point, same day, %2.67
High yield minus that point, basis points (ours)-1.5

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 ratio2.89Last 24 auctions6 of 2418 of 242.73
Bid-to-cover ratio2.89Since 23 April 200881 of 11736 of 1173.14
Bid-to-cover ratio2.89All 216 since 27 October 199990 of 216126 of 2162.72
High yield2.655Last 24 auctions1 of 2423 of 241.346
High yield2.655Since 23 April 20083 of 117114 of 1170.740
High yield2.655All 450 since 23 January 1980307 of 450143 of 4504.932
Indirect bidders' share43.8Last 24 auctions14 of 2410 of 2444.8
Indirect bidders' share43.8All 117 since 23 April 200832 of 11785 of 11735.8
Direct bidders' share13.7Last 24 auctions14 of 2410 of 2414.4
Direct bidders' share13.7All 117 since 23 April 200863 of 11754 of 11714.4
Primary dealers' share42.5Last 24 auctions9 of 2415 of 2441.5
Primary dealers' share42.5All 117 since 23 April 200884 of 11733 of 11748.6
High minus median, basis points3.0Last 24 auctions16 of 247 of 243.9
High minus median, basis points3.0Since 23 April 200850 of 11762 of 1172.6
High minus median, basis points3.0All 450 since 23 January 1980105 of 450304 of 4502.0

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 27 August 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180827_3.pdf. Compiled by 500metrics, "2-year note auction of 27 August 2018 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2018-08-27.

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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