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2-year note auction of 26 September 2022 (new issue)

The 2-year note sold $43 billion at a high yield of 4.290% on , with a bid-to-cover ratio of 2.51.

Coupon
4.250%
Announced
Issued
Matures

High yield

4.290%

Median yield 4.220%

Bid-to-cover

2.51

▲ +0.02 since 23 Aug

Sold

$43.00 billion

$43 billion offered

Indirect bidders

53.0%

Of competitive bids accepted

The high yield was the highest for a 2-year note since 25 July 2007

High yield at each 2-year note auction, %

The high yield was the highest for a 2-year note since 25 July 200736 auctions from 22 October 2019 to 26 September 2022; the latest at 4.290%.0.0%2.0%4.0%6.0%2019202020212022This auction, 4.290%The high yield was the highest for a 2-year note since 25 July 200736 auctions from 22 October 2019 to 26 September 2022; the latest at 4.290%.0.0%2.0%4.0%6.0%202120224.290%

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
4.2902.51
3.3072.49
3.0152.58
3.0842.51
2.5192.61
2.5852.74
2.3652.46
1.5532.64
0.9902.81
0.7692.55
0.6232.36
0.4812.69
0.3102.28
0.2422.65
0.2132.47
0.2492.54
0.1522.74
0.1752.34
0.1522.54
0.1192.44
0.1252.67
0.1372.45
0.1652.71
0.1512.41
0.1362.42
0.1552.78
0.1552.34
0.1932.46
0.1782.68
0.2293.10
0.3982.36
1.1882.45
1.4402.65
1.6532.30
1.6012.63
1.5942.70

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.512.567 of 124 of 12
High yield4.2901.9590 of 1212 of 12
Indirect bidders' share53.060.69 of 123 of 12
Direct bidders' share24.820.72 of 1210 of 12
Primary dealers' share22.221.36 of 126 of 12
High minus median, basis points7.05.02 of 1210 of 12

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

Who bought the 2-year note?

Indirect bidders took 53.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 23 August 2022

Indirect bidders took 53.0% of the competitive bids acceptedIndirect bidders 53.0%, Direct bidders 24.8%, Primary dealers 22.2%Indirect bidders53.0%59.7%Direct bidders24.8%17.3%Primary dealers22.2%23.0%Indirect bidders took 53.0% of the competitive bids acceptedIndirect bidders 53.0%, Direct bidders 24.8%, Primary dealers 22.2%Indirect bidders53.0%59.7%Direct bidders24.8%17.3%Primary dealers22.2%23.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders53.059.7
Direct bidders24.817.3
Primary dealers22.223.0

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$43,000,000,000
Bids received$107,908,880,200
Sold$43,000,123,700
Competitive bids accepted$41,136,040,500
Non-competitive bids accepted$1,644,083,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$220,000,000
High yield, %4.290
Median rate, %4.220
Low rate, %4.100
Interest rate (coupon), %4.250
Bids at the high rate filled, %7.03
Bid-to-cover ratio2.51
Indirect bidders accepted$21,783,389,000
Direct bidders accepted$10,219,000,000
Primary dealers accepted$9,133,651,500
Indirect bidders' share, % (ours)53.0
Direct bidders' share, % (ours)24.8
Primary dealers' share, % (ours)22.2
High minus median, basis points (ours)7.0
Treasury par yield curve, 2-year point, same day, %4.27
High yield minus that point, basis points (ours)2.0

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 ratio2.51Last 24 auctions13 of 2410 of 242.54
Bid-to-cover ratio2.51Since 23 April 2008135 of 16428 of 1642.90
Bid-to-cover ratio2.51All 263 since 27 October 1999165 of 26396 of 2632.66
High yield4.290Last 24 auctions0 of 2424 of 240.280
High yield4.290Since 23 April 20080 of 164164 of 1640.748
High yield4.290All 497 since 23 January 1980256 of 497240 of 4974.427
Indirect bidders' share53.0Last 24 auctions13 of 2411 of 2455.8
Indirect bidders' share53.0All 164 since 23 April 200831 of 164133 of 16441.7
Direct bidders' share24.8Last 24 auctions2 of 2422 of 2418.3
Direct bidders' share24.8All 164 since 23 April 200819 of 164145 of 16415.3
Primary dealers' share22.2Last 24 auctions17 of 247 of 2425.4
Primary dealers' share22.2All 164 since 23 April 2008156 of 1648 of 16443.2
High minus median, basis points7.0Last 24 auctions2 of 2422 of 244.0
High minus median, basis points7.0Since 23 April 20084 of 164160 of 1643.0
High minus median, basis points7.0All 497 since 23 January 19807 of 497488 of 4972.1

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 September 2022. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220926_3.pdf. Compiled by 500metrics, "2-year note auction of 26 September 2022 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2022-09-26.

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

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