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20-year bond auction of 23 August 2023 (new issue)

The 20-year bond sold $17.662 billion at a high yield of 4.499% on , with a bid-to-cover ratio of 2.56.

Coupon
4.375%
Announced
Issued
Matures

High yield

4.499%

Median yield 4.427%

Bid-to-cover

2.56

▼ −0.12 since 19 Jul

Sold

$17.66 billion

$16 billion offered

Indirect bidders

68.4%

Of competitive bids accepted

The high yield was the highest for a 20-year bond of all 40 earlier auctions we hold

High yield at each 20-year bond auction, %

The high yield was the highest for a 20-year bond of all 40 earlier auctions we hold36 auctions from 21 October 2020 to 23 August 2023; the latest at 4.499%.1.0%2.0%3.0%4.0%5.0%2020202120222023This auction, 4.499%The high yield was the highest for a 20-year bond of all 40 earlier auctions we hold36 auctions from 21 October 2020 to 23 August 2023; the latest at 4.499%.1.0%2.0%3.0%4.0%5.0%202220234.499%

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 20-year bond auctions, newest first
AuctionHigh yield, %Bid-to-cover
4.4992.56
4.0362.68
4.0102.87
3.9542.56
3.9202.66
3.9092.53
3.9772.54
3.6782.83
3.9352.68
4.0722.64
4.3952.50
3.8202.65
3.3802.30
3.4202.65
3.4882.60
3.2902.50
3.0952.80
2.6512.72
2.3962.44
2.2102.48
1.9422.59
1.8722.92
2.0652.34
2.1002.25
1.7952.36
1.8502.44
1.8902.33
2.1202.40
2.2862.24
2.1442.42
2.2902.51
1.9202.15
1.6572.28
1.4702.39
1.4222.27
1.3702.43

Against its own history

Against the previous 12 auctions of the 20-year bond
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.562.647 of 124 of 12
High yield4.4993.9440 of 1212 of 12
Indirect bidders' share68.471.49 of 123 of 12
Direct bidders' share20.218.22 of 1210 of 12
Primary dealers' share11.49.44 of 128 of 12
High minus median, basis points7.27.05 of 127 of 12

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

Who bought the 20-year bond?

Indirect bidders took 68.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 20-year bond auction, 19 July 2023

Indirect bidders took 68.4% of the competitive bids acceptedIndirect bidders 68.4%, Direct bidders 20.2%, Primary dealers 11.4%Indirect bidders68.4%68.8%Direct bidders20.2%21.7%Primary dealers11.4%9.6%Indirect bidders took 68.4% of the competitive bids acceptedIndirect bidders 68.4%, Direct bidders 20.2%, Primary dealers 11.4%Indirect bidders68.4%68.8%Direct bidders20.2%21.7%Primary dealers11.4%9.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders68.468.8
Direct bidders20.221.7
Primary dealers11.49.6

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as20-Year, new issue
Offering amount$16,000,000,000
Bids received$42,590,352,300
Sold$17,662,322,300
Competitive bids accepted$15,885,025,000
Non-competitive bids accepted$114,975,300
Federal Reserve (SOMA) add-on$1,662,322,000
Foreign and international (FIMA) non-competitive$0
High yield, %4.499
Median rate, %4.427
Low rate, %4.390
Interest rate (coupon), %4.375
Bids at the high rate filled, %43.98
Bid-to-cover ratio2.56
Indirect bidders accepted$10,873,045,000
Direct bidders accepted$3,209,000,000
Primary dealers accepted$1,802,980,000
Indirect bidders' share, % (ours)68.4
Direct bidders' share, % (ours)20.2
Primary dealers' share, % (ours)11.4
High minus median, basis points (ours)7.2
Treasury par yield curve, 20-year point, same day, %4.46
High yield minus that point, basis points (ours)3.9

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 (20-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 20-year bond auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.56Last 24 auctions13 of 2410 of 242.60
Bid-to-cover ratio2.56All 40 since 20 May 202014 of 4025 of 402.50
High yield4.499Last 24 auctions0 of 2424 of 243.454
High yield4.499All 40 since 20 May 20200 of 4040 of 402.248
Indirect bidders' share68.4Last 24 auctions12 of 2412 of 2468.1
Indirect bidders' share68.4All 40 since 20 May 202012 of 4028 of 4064.3
Direct bidders' share20.2Last 24 auctions6 of 2418 of 2418.2
Direct bidders' share20.2All 40 since 20 May 20207 of 4033 of 4017.7
Primary dealers' share11.4Last 24 auctions13 of 2411 of 2412.0
Primary dealers' share11.4All 40 since 20 May 202029 of 4011 of 4016.8
High minus median, basis points7.2Last 24 auctions10 of 2414 of 247.0
High minus median, basis points7.2All 40 since 20 May 202012 of 4028 of 406.8

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 August 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230823_3.pdf. Compiled by 500metrics, "20-year bond auction of 23 August 2023 (new issue)", https://500metrics.com/treasury/auctions/20-year-bond/2023-08-23.

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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