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2-year note auction of 28 May 2019 (new issue)

The 2-year note sold $44.202 billion at a high yield of 2.125% on , with a bid-to-cover ratio of 2.75.

Coupon
2.125%
Announced
Issued
Matures

High yield

2.125%

Median yield 2.100%

Bid-to-cover

2.75

▲ +0.25 since 25 Feb

Sold

$44.20 billion

$40 billion offered

Indirect bidders

46.6%

Of competitive bids accepted

The high yield was the lowest for a 2-year note since 23 January 2018

High yield at each 2-year note auction, %

The high yield was the lowest for a 2-year note since 23 January 201836 auctions from 26 January 2016 to 28 May 2019; the latest at 2.125%.0.0%1.0%2.0%3.0%2016201720182019This auction, 2.125%The high yield was the lowest for a 2-year note since 23 January 201836 auctions from 26 January 2016 to 28 May 2019; the latest at 2.125%.1.0%1.5%2.0%2.5%3.0%2017201820192.125%

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
2.1252.75
2.5032.50
2.6002.56
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.752.664 of 128 of 12
High yield2.1252.61012 of 120 of 12
Indirect bidders' share46.644.22 of 1210 of 12
Direct bidders' share27.214.80 of 1212 of 12
Primary dealers' share26.242.112 of 120 of 12
High minus median, basis points2.53.08 of 124 of 12

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

  • Direct bidders' share: Highest for a 2-year note since 24 May 2016 (31 auctions in between).
  • Primary dealers' share: Lowest for a 2-year note since 23 January 2018 (13 auctions in between).

Who bought the 2-year note?

Indirect bidders took 46.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 25 February 2019

Indirect bidders took 46.6% of the competitive bids acceptedIndirect bidders 46.6%, Direct bidders 27.2%, Primary dealers 26.2%Indirect bidders46.6%38.6%Direct bidders27.2%22.6%Primary dealers26.2%38.8%Indirect bidders took 46.6% of the competitive bids acceptedIndirect bidders 46.6%, Direct bidders 27.2%, Primary dealers 26.2%Indirect bidders46.6%38.6%Direct bidders27.2%22.6%Primary dealers26.2%38.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders46.638.6
Direct bidders27.222.6
Primary dealers26.238.8

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$114,021,456,200
Sold$44,201,927,600
Competitive bids accepted$39,610,396,400
Non-competitive bids accepted$184,611,000
Federal Reserve (SOMA) add-on$4,201,920,200
Foreign and international (FIMA) non-competitive$205,000,000
High yield, %2.125
Median rate, %2.100
Low rate, %2.020
Interest rate (coupon), %2.125
Bids at the high rate filled, %45.29
Bid-to-cover ratio2.75
Indirect bidders accepted$18,461,106,400
Direct bidders accepted$10,766,290,000
Primary dealers accepted$10,383,000,000
Indirect bidders' share, % (ours)46.6
Direct bidders' share, % (ours)27.2
Primary dealers' share, % (ours)26.2
High minus median, basis points (ours)2.5
Treasury par yield curve, 2-year point, same day, %2.12
High yield minus that point, basis points (ours)0.5

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 ratio2.75Last 24 auctions11 of 2413 of 242.73
Bid-to-cover ratio2.75Since 23 April 200888 of 12435 of 1243.10
Bid-to-cover ratio2.75All 223 since 27 October 1999102 of 223120 of 2232.70
High yield2.125Last 24 auctions13 of 2411 of 242.282
High yield2.125Since 23 April 200818 of 124106 of 1240.755
High yield2.125All 457 since 23 January 1980331 of 457126 of 4574.894
Indirect bidders' share46.6Last 24 auctions9 of 2415 of 2445.0
Indirect bidders' share46.6All 124 since 23 April 200823 of 124101 of 12436.4
Direct bidders' share27.2Last 24 auctions0 of 2424 of 2414.9
Direct bidders' share27.2All 124 since 23 April 20089 of 124115 of 12414.4
Primary dealers' share26.2Last 24 auctions21 of 243 of 2440.9
Primary dealers' share26.2All 124 since 23 April 2008120 of 1244 of 12447.8
High minus median, basis points2.5Last 24 auctions17 of 247 of 243.6
High minus median, basis points2.5Since 23 April 200866 of 12455 of 1242.6
High minus median, basis points2.5All 457 since 23 January 1980169 of 457276 of 4572.0

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 28 May 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20190528_2.pdf. Compiled by 500metrics, "2-year note auction of 28 May 2019 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2019-05-28.

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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