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20-year TIPS auction of 27 July 2009 (reopening)

The 20-year TIPS sold $6.15 billion at a high real yield of 2.387% on , with a bid-to-cover ratio of 2.27.

Coupon
2.500%
Announced
Issued
Matures

Real yield

2.387%

Median real yield 2.300%

Bid-to-cover

2.27

▲ +0.35 since 26 Jan

Sold

$6.15 billion

$6 billion offered

Indirect bidders

47.8%

Of competitive bids accepted

Real yield at the last 8 20-year TIPS auctions

Real yield at each 20-year TIPS auction, %

Real yield at the last 8 20-year TIPS auctions8 auctions from 24 January 2006 to 27 July 2009; the latest at 2.387%.1.8%2.0%2.2%2.4%2.6%2006200720082009This auction, 2.387%Real yield at the last 8 20-year TIPS auctions8 auctions from 24 January 2006 to 27 July 2009; the latest at 2.387%.1.8%2.0%2.2%2.4%2.6%20062007200820092.387%

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

The 8 auctions as a table
Real yield and bid-to-cover of the last 8 20-year TIPS auctions, newest first
AuctionReal yield, %Bid-to-cover
2.3872.27
2.5001.92
2.2191.58
1.8071.79
2.6002.23
2.4202.05
2.4942.24
2.0391.48

Against its own history

Against every earlier 20-year TIPS auction we hold
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.271.920 of 77 of 7
High real yield2.3872.4204 of 73 of 7
Indirect bidders' share47.848.51 of 21 of 2
Direct bidders' share1.10.80 of 22 of 2
Primary dealers' share51.050.71 of 21 of 2
High minus median, basis points8.75.72 of 75 of 7

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

Who bought the 20-year TIPS?

Primary dealers took 51.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 20-year TIPS auction, 26 January 2009

Primary dealers took 51.0% of the competitive bids acceptedIndirect bidders 47.8%, Direct bidders 1.1%, Primary dealers 51.0%Indirect bidders47.8%54.0%Direct bidders1.1%0.4%Primary dealers51.0%45.6%Primary dealers took 51.0% of the competitive bids acceptedIndirect bidders 47.8%, Direct bidders 1.1%, Primary dealers 51.0%Indirect bidders47.8%54.0%Direct bidders1.1%0.4%Primary dealers51.0%45.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders47.854.0
Direct bidders1.10.4
Primary dealers51.045.6

About these figures

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

Treasury's published result

FieldValue
Offered as19-Year 6-Month, reopening
Offering amount$6,000,000,000
Bids received$13,748,203,800
Sold$6,150,303,800
Competitive bids accepted$5,899,990,000
Non-competitive bids accepted$100,012,600
Federal Reserve (SOMA) add-on$150,301,200
Foreign and international (FIMA) non-competitive$0
Real yield, %2.387
Median rate, %2.300
Low rate, %2.199
Interest rate (coupon), %2.500
Bids at the high rate filled, %97.30
Bid-to-cover ratio2.27
Indirect bidders accepted$2,820,590,000
Direct bidders accepted$67,500,000
Primary dealers accepted$3,011,900,000
Indirect bidders' share, % (ours)47.8
Direct bidders' share, % (ours)1.1
Primary dealers' share, % (ours)51.0
High minus median, basis points (ours)8.7
Treasury real par yield curve, 20-year point, same day, %2.38
High yield minus that point, basis points (ours)0.7

Treasury's own files: announcement (PDF) · results (PDF)

How to read this result

The high real 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 real par yield curve comparison sets the high yield against Treasury's own real 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 TIPS auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.27Since 22 July 20080 of 22 of 21.75
High real yield2.387Since 22 July 20081 of 21 of 22.360
High minus median, basis points8.7Since 22 July 20082 of 20 of 214.0

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 July 2009. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/R_20090727_3.pdf. Compiled by 500metrics, "20-year TIPS auction of 27 July 2009 (reopening)", https://500metrics.com/treasury/auctions/20-year-tips/2009-07-27.

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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