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2-year note auction of 27 March 2023 (new issue)

The 2-year note sold $42 billion at a high yield of 3.954% on , with a bid-to-cover ratio of 2.44.

Coupon
3.875%
Announced
Issued
Matures

High yield

3.954%

Median yield 3.870%

Bid-to-cover

2.44

▼ −0.17 since 21 Feb

Sold

$42.00 billion

$42 billion offered

Indirect bidders

52.8%

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 27 April 2020 to 27 March 2023; the latest at 3.954%.0.0%2.0%4.0%6.0%2020202120222023This auction, 3.954%High yield at the last 36 2-year note auctions36 auctions from 27 April 2020 to 27 March 2023; the latest at 3.954%.0.0%2.0%4.0%6.0%2021202220233.954%

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
3.9542.44
4.6732.61
4.1392.94
4.3732.71
4.5052.64
4.4602.59
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.442.6012 of 120 of 12
High yield3.9543.7236 of 126 of 12
Indirect bidders' share52.860.910 of 122 of 12
Direct bidders' share24.222.24 of 128 of 12
Primary dealers' share23.019.22 of 1210 of 12
High minus median, basis points8.46.40 of 1211 of 12

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

  • Bid-to-cover ratio: Lowest for a 2-year note since 22 November 2021 (15 auctions in between).

Who bought the 2-year note?

Indirect bidders took 52.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 21 February 2023

Indirect bidders took 52.8% of the competitive bids acceptedIndirect bidders 52.8%, Direct bidders 24.2%, Primary dealers 23.0%Indirect bidders52.8%62.0%Direct bidders24.2%23.0%Primary dealers23.0%15.0%Indirect bidders took 52.8% of the competitive bids acceptedIndirect bidders 52.8%, Direct bidders 24.2%, Primary dealers 23.0%Indirect bidders52.8%62.0%Direct bidders24.2%23.0%Primary dealers23.0%15.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders52.862.0
Direct bidders24.223.0
Primary dealers23.015.0

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$42,000,000,000
Bids received$102,406,568,600
Sold$42,000,018,600
Competitive bids accepted$41,437,725,000
Non-competitive bids accepted$462,293,600
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %3.954
Median rate, %3.870
Low rate, %3.800
Interest rate (coupon), %3.875
Bids at the high rate filled, %13.09
Bid-to-cover ratio2.44
Indirect bidders accepted$21,879,275,000
Direct bidders accepted$10,015,000,000
Primary dealers accepted$9,543,450,000
Indirect bidders' share, % (ours)52.8
Direct bidders' share, % (ours)24.2
Primary dealers' share, % (ours)23.0
High minus median, basis points (ours)8.4
Treasury par yield curve, 2-year point, same day, %3.94
High yield minus that point, basis points (ours)1.4

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 ratio2.44Last 24 auctions21 of 243 of 242.58
Bid-to-cover ratio2.44Since 23 April 2008151 of 17016 of 1702.88
Bid-to-cover ratio2.44All 269 since 27 October 1999184 of 26981 of 2692.65
High yield3.954Last 24 auctions6 of 2418 of 241.959
High yield3.954Since 23 April 20086 of 170164 of 1700.764
High yield3.954All 503 since 23 January 1980280 of 503223 of 5034.427
Indirect bidders' share52.8Last 24 auctions16 of 248 of 2457.6
Indirect bidders' share52.8All 170 since 23 April 200836 of 170134 of 17042.3
Direct bidders' share24.2Last 24 auctions4 of 2420 of 2420.6
Direct bidders' share24.2All 170 since 23 April 200822 of 170148 of 17015.6
Primary dealers' share23.0Last 24 auctions11 of 2413 of 2422.6
Primary dealers' share23.0All 170 since 23 April 2008156 of 17014 of 17042.9
High minus median, basis points8.4Last 24 auctions0 of 2423 of 244.4
High minus median, basis points8.4Since 23 April 20081 of 170167 of 1703.0
High minus median, basis points8.4All 503 since 23 January 19803 of 503498 of 5032.1

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 27 March 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230327_3.pdf. Compiled by 500metrics, "2-year note auction of 27 March 2023 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2023-03-27.

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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