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3-year note auction of 12 January 2016 (new issue)

The 3-year note sold $24 billion at a high yield of 1.174% on , with a bid-to-cover ratio of 2.94.

Coupon
1.125%
Announced
Issued
Matures

High yield

1.174%

Median yield 1.140%

Bid-to-cover

2.94

▼ −0.20 since 8 Dec

Sold

$24.00 billion

$24 billion offered

Indirect bidders

62.8%

Of competitive bids accepted

High yield at the last 36 3-year note auctions

High yield at each 3-year note auction, %

High yield at the last 36 3-year note auctions36 auctions from 12 February 2013 to 12 January 2016; the latest at 1.174%.0.3%0.5%0.8%1.0%1.3%1.5%2013201420152016This auction, 1.174%High yield at the last 36 3-year note auctions36 auctions from 12 February 2013 to 12 January 2016; the latest at 1.174%.0.6%0.8%1.0%1.2%1.4%2014201520161.174%

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 3-year note auctions, newest first
AuctionHigh yield, %Bid-to-cover
1.1742.94
1.2553.14
1.2712.82
0.8953.14
1.0563.23
1.0133.34
0.9323.16
1.1253.33
1.0003.34
0.8653.25
1.1043.33
1.0503.34
0.9263.33
1.0663.24
0.9983.18
0.9943.42
1.0663.17
0.9243.03
0.9923.38
0.9303.41
0.9283.40
0.8953.36
0.8023.25
0.7153.42
0.7993.25
0.6313.55
0.6443.46
0.7103.05
0.9133.29
0.6313.21
0.7193.35
0.5812.95
0.3543.38
0.3423.24
0.4113.51
0.4113.59

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.943.2911 of 121 of 12
High yield1.1741.0322 of 1210 of 12
Indirect bidders' share62.849.20 of 1212 of 12
Direct bidders' share9.411.18 of 124 of 12
Primary dealers' share27.839.612 of 120 of 12
High minus median, basis points3.43.57 of 125 of 12

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

  • Indirect bidders' share: Highest for a 3-year note since 9 November 2009 (73 auctions in between).
  • Primary dealers' share: Lowest for a 3-year note since 9 November 2009 (73 auctions in between).

Who bought the 3-year note?

Indirect bidders took 62.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 8 December 2015

Indirect bidders took 62.8% of the competitive bids acceptedIndirect bidders 62.8%, Direct bidders 9.4%, Primary dealers 27.8%Indirect bidders62.8%47.4%Direct bidders9.4%18.6%Primary dealers27.8%34.0%Indirect bidders took 62.8% of the competitive bids acceptedIndirect bidders 62.8%, Direct bidders 9.4%, Primary dealers 27.8%Indirect bidders62.8%47.4%Direct bidders9.4%18.6%Primary dealers27.8%34.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders62.847.4
Direct bidders9.418.6
Primary dealers27.834.0

About these figures

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

Treasury's published result

FieldValue
Offered as3-Year, new issue
Offering amount$24,000,000,000
Bids received$70,662,575,800
Sold$24,000,003,800
Competitive bids accepted$23,954,858,000
Non-competitive bids accepted$45,145,800
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.174
Median rate, %1.140
Low rate, %0.888
Interest rate (coupon), %1.125
Bids at the high rate filled, %37.80
Bid-to-cover ratio2.94
Indirect bidders accepted$15,045,130,000
Direct bidders accepted$2,250,728,000
Primary dealers accepted$6,659,000,000
Indirect bidders' share, % (ours)62.8
Direct bidders' share, % (ours)9.4
Primary dealers' share, % (ours)27.8
High minus median, basis points (ours)3.4
Treasury par yield curve, 3-year point, same day, %1.18
High yield minus that point, basis points (ours)-0.6

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 (3-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 3-year note auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.94Last 24 auctions23 of 241 of 243.29
Bid-to-cover ratio2.94Since 10 November 200873 of 8613 of 863.25
Bid-to-cover ratio2.94All 102 since 6 May 200374 of 10228 of 1023.22
High yield1.174Last 24 auctions2 of 2422 of 240.993
High yield1.174Since 10 November 200825 of 8661 of 860.925
High yield1.174All 169 since 5 May 1981108 of 16961 of 1691.800
Indirect bidders' share62.8Last 24 auctions0 of 2424 of 2442.1
Indirect bidders' share62.8All 86 since 10 November 20081 of 8685 of 8637.8
Direct bidders' share9.4Last 24 auctions20 of 244 of 2415.0
Direct bidders' share9.4All 86 since 10 November 200860 of 8626 of 8612.0
Primary dealers' share27.8Last 24 auctions24 of 240 of 2444.0
Primary dealers' share27.8All 86 since 10 November 200885 of 861 of 8647.6
High minus median, basis points3.4Last 24 auctions7 of 2416 of 242.8
High minus median, basis points3.4Since 10 November 200830 of 8653 of 863.0
High minus median, basis points3.4All 169 since 5 May 198138 of 169128 of 1692.0

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 12 January 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160112_2.pdf. Compiled by 500metrics, "3-year note auction of 12 January 2016 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2016-01-12.

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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