500metrics

All sources checked Checked

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

The 2-year note sold $42.425 billion at a high yield of 2.836% on , with a bid-to-cover ratio of 2.65.

Coupon
2.750%
Announced
Issued
Matures

High yield

2.836%

Median yield 2.816%

Bid-to-cover

2.65

▼ −0.02 since 23 Oct

Sold

$42.42 billion

$39 billion offered

Indirect bidders

44.9%

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 23 June 2015 to 26 November 2018; the latest at 2.836%.0.0%1.0%2.0%3.0%2015201620172018This auction, 2.836%High yield at the last 36 2-year note auctions36 auctions from 23 June 2015 to 26 November 2018; the latest at 2.836%.0.0%1.0%2.0%3.0%201720182.836%

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
2.8362.65
2.8802.67
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.652.739 of 123 of 12
High yield2.8362.5181 of 1211 of 12
Indirect bidders' share44.943.04 of 128 of 12
Direct bidders' share19.514.40 of 1212 of 12
Primary dealers' share35.642.111 of 121 of 12
High minus median, basis points2.03.011 of 121 of 12

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

  • Direct bidders' share: Highest for a 2-year note since 21 February 2017 (18 auctions in between).

Who bought the 2-year note?

Indirect bidders took 44.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 23 October 2018

Indirect bidders took 44.9% of the competitive bids acceptedIndirect bidders 44.9%, Direct bidders 19.5%, Primary dealers 35.6%Indirect bidders44.9%52.6%Direct bidders19.5%5.5%Primary dealers35.6%41.9%Indirect bidders took 44.9% of the competitive bids acceptedIndirect bidders 44.9%, Direct bidders 19.5%, Primary dealers 35.6%Indirect bidders44.9%52.6%Direct bidders19.5%5.5%Primary dealers35.6%41.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders44.952.6
Direct bidders19.55.5
Primary dealers35.641.9

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$39,000,000,000
Bids received$106,868,206,200
Sold$42,424,857,200
Competitive bids accepted$38,562,886,000
Non-competitive bids accepted$337,191,300
Federal Reserve (SOMA) add-on$3,424,779,900
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.836
Median rate, %2.816
Low rate, %2.720
Interest rate (coupon), %2.750
Bids at the high rate filled, %2.49
Bid-to-cover ratio2.65
Indirect bidders accepted$17,305,235,000
Direct bidders accepted$7,513,486,000
Primary dealers accepted$13,744,165,000
Indirect bidders' share, % (ours)44.9
Direct bidders' share, % (ours)19.5
Primary dealers' share, % (ours)35.6
High minus median, basis points (ours)2.0
Treasury par yield curve, 2-year point, same day, %2.84
High yield minus that point, basis points (ours)-0.4

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 ratio2.65Last 24 auctions18 of 245 of 242.73
Bid-to-cover ratio2.65Since 23 April 2008101 of 12018 of 1203.12
Bid-to-cover ratio2.65All 219 since 27 October 1999121 of 21997 of 2192.72
High yield2.836Last 24 auctions1 of 2423 of 241.614
High yield2.836Since 23 April 20082 of 120118 of 1200.745
High yield2.836All 453 since 23 January 1980303 of 453150 of 4534.921
Indirect bidders' share44.9Last 24 auctions11 of 2413 of 2444.3
Indirect bidders' share44.9All 120 since 23 April 200829 of 12091 of 12035.8
Direct bidders' share19.5Last 24 auctions1 of 2423 of 2414.2
Direct bidders' share19.5All 120 since 23 April 200826 of 12094 of 12014.3
Primary dealers' share35.6Last 24 auctions19 of 245 of 2441.8
Primary dealers' share35.6All 120 since 23 April 2008106 of 12014 of 12048.1
High minus median, basis points2.0Last 24 auctions23 of 241 of 243.4
High minus median, basis points2.0Since 23 April 200881 of 12030 of 1202.7
High minus median, basis points2.0All 453 since 23 January 1980215 of 453172 of 4532.0

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 November 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20181126_3.pdf. Compiled by 500metrics, "2-year note auction of 26 November 2018 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2018-11-26.

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

Our text and compilation: CC BY 4.0. How to reuse and cite this page.