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2-year note auction of 23 May 2023 (new issue)

The 2-year note sold $49.888 billion at a high yield of 4.300% on , with a bid-to-cover ratio of 2.90.

Coupon
4.250%
Announced
Issued
Matures

High yield

4.300%

Median yield 4.255%

Bid-to-cover

2.90

▲ +0.22 since 25 Apr

Sold

$49.89 billion

$42 billion offered

Indirect bidders

68.2%

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 2020 to 23 May 2023; the latest at 4.300%.0.0%2.0%4.0%6.0%2020202120222023This auction, 4.300%High yield at the last 36 2-year note auctions36 auctions from 23 June 2020 to 23 May 2023; the latest at 4.300%.0.0%2.0%4.0%6.0%2021202220234.300%

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
4.3002.90
3.9692.68
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.902.601 of 1211 of 12
High yield4.3004.0544 of 128 of 12
Indirect bidders' share68.260.50 of 1212 of 12
Direct bidders' share15.622.212 of 120 of 12
Primary dealers' share16.219.810 of 122 of 12
High minus median, basis points4.56.410 of 121 of 12

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

  • Indirect bidders' share: Highest for a 2-year note since 23 June 2009 (157 auctions in between).
  • Direct bidders' share: Lowest for a 2-year note since 24 January 2022 (15 auctions in between).

Who bought the 2-year note?

Indirect bidders took 68.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 25 April 2023

Indirect bidders took 68.2% of the competitive bids acceptedIndirect bidders 68.2%, Direct bidders 15.6%, Primary dealers 16.2%Indirect bidders68.2%61.2%Direct bidders15.6%19.9%Primary dealers16.2%18.9%Indirect bidders took 68.2% of the competitive bids acceptedIndirect bidders 68.2%, Direct bidders 15.6%, Primary dealers 16.2%Indirect bidders68.2%61.2%Direct bidders15.6%19.9%Primary dealers16.2%18.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders68.261.2
Direct bidders15.619.9
Primary dealers16.218.9

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$42,000,000,000
Bids received$129,665,477,300
Sold$49,887,600,600
Competitive bids accepted$41,665,843,300
Non-competitive bids accepted$323,572,200
Federal Reserve (SOMA) add-on$7,887,485,100
Foreign and international (FIMA) non-competitive$10,700,000
High yield, %4.300
Median rate, %4.255
Low rate, %4.150
Interest rate (coupon), %4.250
Bids at the high rate filled, %6.83
Bid-to-cover ratio2.90
Indirect bidders accepted$28,420,515,800
Direct bidders accepted$6,501,373,500
Primary dealers accepted$6,743,954,000
Indirect bidders' share, % (ours)68.2
Direct bidders' share, % (ours)15.6
Primary dealers' share, % (ours)16.2
High minus median, basis points (ours)4.5
Treasury par yield curve, 2-year point, same day, %4.26
High yield minus that point, basis points (ours)4.0

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 ratio2.90Last 24 auctions1 of 2423 of 242.60
Bid-to-cover ratio2.90Since 23 April 200881 of 17289 of 1722.87
Bid-to-cover ratio2.90All 271 since 27 October 199990 of 271179 of 2712.65
High yield4.300Last 24 auctions4 of 2420 of 242.552
High yield4.300Since 23 April 20084 of 172168 of 1720.769
High yield4.300All 505 since 23 January 1980259 of 505245 of 5054.404
Indirect bidders' share68.2Last 24 auctions0 of 2424 of 2458.9
Indirect bidders' share68.2All 172 since 23 April 20081 of 172171 of 17242.7
Direct bidders' share15.6Last 24 auctions22 of 242 of 2421.2
Direct bidders' share15.6All 172 since 23 April 200887 of 17285 of 17215.7
Primary dealers' share16.2Last 24 auctions20 of 244 of 2421.4
Primary dealers' share16.2All 172 since 23 April 2008168 of 1724 of 17242.7
High minus median, basis points4.5Last 24 auctions13 of 2410 of 244.8
High minus median, basis points4.5Since 23 April 200834 of 172134 of 1723.0
High minus median, basis points4.5All 505 since 23 January 198060 of 505438 of 5052.2

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 23 May 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230523_2.pdf. Compiled by 500metrics, "2-year note auction of 23 May 2023 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2023-05-23.

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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