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

The 2-year note sold $40 billion at a high yield of 2.619% on , with a bid-to-cover ratio of 2.31.

Coupon
2.500%
Announced
Issued
Matures

High yield

2.619%

Median yield 2.582%

Bid-to-cover

2.31

▼ −0.34 since 26 Nov

Sold

$40.00 billion

$40 billion offered

Indirect bidders

45.0%

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 28 July 2015 to 24 December 2018; the latest at 2.619%.0.0%1.0%2.0%3.0%2015201620172018This auction, 2.619%High yield at the last 36 2-year note auctions36 auctions from 28 July 2015 to 24 December 2018; the latest at 2.619%.1.0%1.5%2.0%2.5%3.0%201720182.619%

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
2.6192.31
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.312.7212 of 120 of 12
High yield2.6192.5645 of 127 of 12
Indirect bidders' share45.044.24 of 128 of 12
Direct bidders' share7.814.411 of 121 of 12
Primary dealers' share47.242.10 of 1212 of 12
High minus median, basis points3.73.04 of 128 of 12

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

  • Bid-to-cover ratio: Lowest for a 2-year note since 22 December 2008 (112 auctions in between).
  • Primary dealers' share: Highest for a 2-year note since 27 December 2016 (21 auctions in between).

Who bought the 2-year note?

Primary dealers took 47.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 26 November 2018

Primary dealers took 47.2% of the competitive bids acceptedIndirect bidders 45.0%, Direct bidders 7.8%, Primary dealers 47.2%Indirect bidders45.0%44.9%Direct bidders7.8%19.5%Primary dealers47.2%35.6%Primary dealers took 47.2% of the competitive bids acceptedIndirect bidders 45.0%, Direct bidders 7.8%, Primary dealers 47.2%Indirect bidders45.0%44.9%Direct bidders7.8%19.5%Primary dealers47.2%35.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders45.044.9
Direct bidders7.819.5
Primary dealers47.235.6

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$40,000,000,000
Bids received$92,288,623,900
Sold$40,000,083,900
Competitive bids accepted$39,523,090,000
Non-competitive bids accepted$376,993,900
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.619
Median rate, %2.582
Low rate, %2.400
Interest rate (coupon), %2.500
Bids at the high rate filled, %12.56
Bid-to-cover ratio2.31
Indirect bidders accepted$17,772,630,000
Direct bidders accepted$3,102,000,000
Primary dealers accepted$18,648,460,000
Indirect bidders' share, % (ours)45.0
Direct bidders' share, % (ours)7.8
Primary dealers' share, % (ours)47.2
High minus median, basis points (ours)3.7
Treasury par yield curve, 2-year point, same day, %2.55
High yield minus that point, basis points (ours)6.9

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 ratio2.31Last 24 auctions24 of 240 of 242.73
Bid-to-cover ratio2.31Since 23 April 2008115 of 1216 of 1213.12
Bid-to-cover ratio2.31All 220 since 27 October 1999160 of 22059 of 2202.72
High yield2.619Last 24 auctions5 of 2419 of 241.844
High yield2.619Since 23 April 20088 of 121113 of 1210.745
High yield2.619All 454 since 23 January 1980313 of 454141 of 4544.914
Indirect bidders' share45.0Last 24 auctions11 of 2413 of 2444.7
Indirect bidders' share45.0All 121 since 23 April 200829 of 12192 of 12135.8
Direct bidders' share7.8Last 24 auctions23 of 241 of 2414.2
Direct bidders' share7.8All 121 since 23 April 2008100 of 12121 of 12114.3
Primary dealers' share47.2Last 24 auctions3 of 2421 of 2441.5
Primary dealers' share47.2All 121 since 23 April 200865 of 12156 of 12148.0
High minus median, basis points3.7Last 24 auctions11 of 2413 of 243.4
High minus median, basis points3.7Since 23 April 200837 of 12183 of 1212.6
High minus median, basis points3.7All 454 since 23 January 198083 of 454367 of 4542.0

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 December 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20181224_3.pdf. Compiled by 500metrics, "2-year note auction of 24 December 2018 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2018-12-24.

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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