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2-year note auction of 26 December 2023 (new issue)

The 2-year note sold $57 billion at a high yield of 4.314% on , with a bid-to-cover ratio of 2.68.

Coupon
4.250%
Announced
Issued
Matures

High yield

4.314%

Median yield 4.270%

Bid-to-cover

2.68

▲ +0.14 since 27 Nov

Sold

$57.00 billion

$57 billion offered

Indirect bidders

61.9%

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 25 January 2021 to 26 December 2023; the latest at 4.314%.0.0%2.0%4.0%6.0%202120222023This auction, 4.314%High yield at the last 36 2-year note auctions36 auctions from 25 January 2021 to 26 December 2023; the latest at 4.314%.0.0%2.0%4.0%6.0%202220234.314%

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
4.3142.68
4.8872.54
5.0552.64
5.0852.73
5.0242.94
4.8232.78
4.6702.86
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

Against its own history

Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.682.727 of 124 of 12
High yield4.3144.6728 of 124 of 12
Indirect bidders' share61.963.69 of 123 of 12
Direct bidders' share19.520.28 of 124 of 12
Primary dealers' share18.616.24 of 128 of 12
High minus median, basis points4.45.210 of 121 of 12

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

Who bought the 2-year note?

Indirect bidders took 61.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 2-year note auction, 27 November 2023

Indirect bidders took 61.9% of the competitive bids acceptedIndirect bidders 61.9%, Direct bidders 19.5%, Primary dealers 18.6%Indirect bidders61.9%57.4%Direct bidders19.5%23.9%Primary dealers18.6%18.8%Indirect bidders took 61.9% of the competitive bids acceptedIndirect bidders 61.9%, Direct bidders 19.5%, Primary dealers 18.6%Indirect bidders61.9%57.4%Direct bidders19.5%23.9%Primary dealers18.6%18.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders61.957.4
Direct bidders19.523.9
Primary dealers18.618.8

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$57,000,000,000
Bids received$152,676,029,000
Sold$57,000,058,100
Competitive bids accepted$56,279,769,100
Non-competitive bids accepted$570,289,000
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$150,000,000
High yield, %4.314
Median rate, %4.270
Low rate, %4.200
Interest rate (coupon), %4.250
Bids at the high rate filled, %96.98
Bid-to-cover ratio2.68
Indirect bidders accepted$34,811,740,000
Direct bidders accepted$10,981,029,100
Primary dealers accepted$10,487,000,000
Indirect bidders' share, % (ours)61.9
Direct bidders' share, % (ours)19.5
Primary dealers' share, % (ours)18.6
High minus median, basis points (ours)4.4
Treasury par yield curve, 2-year point, same day, %4.26
High yield minus that point, basis points (ours)5.4

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 ratio2.68Last 24 auctions9 of 2414 of 242.64
Bid-to-cover ratio2.68Since 23 April 2008114 of 17961 of 1792.86
Bid-to-cover ratio2.68All 278 since 27 October 1999133 of 278141 of 2782.66
High yield4.314Last 24 auctions10 of 2414 of 244.214
High yield4.314Since 23 April 200810 of 179169 of 1790.842
High yield4.314All 512 since 23 January 1980264 of 512248 of 5124.482
Indirect bidders' share61.9Last 24 auctions14 of 2410 of 2462.0
Indirect bidders' share61.9All 179 since 23 April 200815 of 179164 of 17943.8
Direct bidders' share19.5Last 24 auctions16 of 248 of 2420.5
Direct bidders' share19.5All 179 since 23 April 200854 of 179125 of 17915.9
Primary dealers' share18.6Last 24 auctions12 of 2412 of 2418.4
Primary dealers' share18.6All 179 since 23 April 2008165 of 17914 of 17941.9
High minus median, basis points4.4Last 24 auctions19 of 243 of 245.6
High minus median, basis points4.4Since 23 April 200844 of 179128 of 1793.1
High minus median, basis points4.4All 512 since 23 January 198073 of 512431 of 5122.2

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 26 December 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20231226_4.pdf. Compiled by 500metrics, "2-year note auction of 26 December 2023 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2023-12-26.

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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