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2-year note auction of 24 September 2018 (new issue)

The 2-year note sold $37 billion at a high yield of 2.829% on , with a bid-to-cover ratio of 2.44.

Coupon
2.750%
Announced
Issued
Matures

High yield

2.829%

Median yield 2.800%

Bid-to-cover

2.44

▼ −0.45 since 27 Aug

Sold

$37.00 billion

$37 billion offered

Indirect bidders

40.0%

Of competitive bids accepted

The high yield was the highest for a 2-year note since 24 June 2008

High yield at each 2-year note auction, %

The high yield was the highest for a 2-year note since 24 June 200836 auctions from 24 March 2015 to 24 September 2018; the latest at 2.829%.0.0%1.0%2.0%3.0%2015201620172018This auction, 2.829%The high yield was the highest for a 2-year note since 24 June 200836 auctions from 24 March 2015 to 24 September 2018; the latest at 2.829%.0.0%1.0%2.0%3.0%2016201720182.829%

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
2.8292.44
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.442.8712 of 120 of 12
High yield2.8292.2820 of 1212 of 12
Indirect bidders' share40.044.011 of 121 of 12
Direct bidders' share13.414.910 of 122 of 12
Primary dealers' share46.641.50 of 1212 of 12
High minus median, basis points2.93.28 of 124 of 12

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

  • Bid-to-cover ratio: Lowest for a 2-year note since 27 December 2016 (18 auctions in between).
  • Primary dealers' share: Highest for a 2-year note since 27 December 2016 (18 auctions in between).

Who bought the 2-year note?

Primary dealers took 46.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 27 August 2018

Primary dealers took 46.6% of the competitive bids acceptedIndirect bidders 40.0%, Direct bidders 13.4%, Primary dealers 46.6%Indirect bidders40.0%43.8%Direct bidders13.4%13.7%Primary dealers46.6%42.5%Primary dealers took 46.6% of the competitive bids acceptedIndirect bidders 40.0%, Direct bidders 13.4%, Primary dealers 46.6%Indirect bidders40.0%43.8%Direct bidders13.4%13.7%Primary dealers46.6%42.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders40.043.8
Direct bidders13.413.7
Primary dealers46.642.5

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$37,000,000,000
Bids received$90,162,253,100
Sold$37,000,075,500
Competitive bids accepted$36,509,217,400
Non-competitive bids accepted$390,858,100
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.829
Median rate, %2.800
Low rate, %2.700
Interest rate (coupon), %2.750
Bids at the high rate filled, %44.96
Bid-to-cover ratio2.44
Indirect bidders accepted$14,590,649,400
Direct bidders accepted$4,894,000,000
Primary dealers accepted$17,024,568,000
Indirect bidders' share, % (ours)40.0
Direct bidders' share, % (ours)13.4
Primary dealers' share, % (ours)46.6
High minus median, basis points (ours)2.9
Treasury par yield curve, 2-year point, same day, %2.83
High yield minus that point, basis points (ours)-0.1

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 ratio2.44Last 24 auctions23 of 240 of 242.78
Bid-to-cover ratio2.44Since 23 April 2008110 of 1187 of 1183.14
Bid-to-cover ratio2.44All 217 since 27 October 1999143 of 21772 of 2172.72
High yield2.829Last 24 auctions0 of 2424 of 241.372
High yield2.829Since 23 April 20081 of 118117 of 1180.742
High yield2.829All 451 since 23 January 1980302 of 451149 of 4514.930
Indirect bidders' share40.0Last 24 auctions18 of 246 of 2444.3
Indirect bidders' share40.0All 118 since 23 April 200844 of 11874 of 11835.8
Direct bidders' share13.4Last 24 auctions16 of 248 of 2414.4
Direct bidders' share13.4All 118 since 23 April 200867 of 11851 of 11814.4
Primary dealers' share46.6Last 24 auctions4 of 2420 of 2441.5
Primary dealers' share46.6All 118 since 23 April 200867 of 11851 of 11848.4
High minus median, basis points2.9Last 24 auctions17 of 247 of 243.6
High minus median, basis points2.9Since 23 April 200856 of 11861 of 1182.7
High minus median, basis points2.9All 451 since 23 January 1980147 of 451298 of 4512.0

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 24 September 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180924_3.pdf. Compiled by 500metrics, "2-year note auction of 24 September 2018 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2018-09-24.

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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