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3-year note auction of 9 February 2016 (new issue)

The 3-year note sold $25.884 billion at a high yield of 0.844% on , with a bid-to-cover ratio of 2.74.

Coupon
0.750%
Announced
Issued
Matures

High yield

0.844%

Median yield 0.810%

Bid-to-cover

2.74

▼ −0.20 since 12 Jan

Sold

$25.88 billion

$24 billion offered

Indirect bidders

41.5%

Of competitive bids accepted

The high yield was the lowest for a 3-year note since 11 March 2014

High yield at each 3-year note auction, %

The high yield was the lowest for a 3-year note since 11 March 201436 auctions from 12 March 2013 to 9 February 2016; the latest at 0.844%.0.3%0.5%0.8%1.0%1.3%1.5%2013201420152016This auction, 0.844%The high yield was the lowest for a 3-year note since 11 March 201436 auctions from 12 March 2013 to 9 February 2016; the latest at 0.844%.0.8%1.0%1.2%1.4%2014201520160.844%

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
0.8442.74
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.743.2412 of 120 of 12
High yield0.8441.05312 of 120 of 12
Indirect bidders' share41.550.111 of 121 of 12
Direct bidders' share15.010.42 of 1210 of 12
Primary dealers' share43.539.62 of 1210 of 12
High minus median, basis points3.43.57 of 124 of 12

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

  • Bid-to-cover ratio: Lowest for a 3-year note since 7 July 2009 (78 auctions in between).

Who bought the 3-year note?

Primary dealers took 43.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 12 January 2016

Primary dealers took 43.5% of the competitive bids acceptedIndirect bidders 41.5%, Direct bidders 15.0%, Primary dealers 43.5%Indirect bidders41.5%62.8%Direct bidders15.0%9.4%Primary dealers43.5%27.8%Primary dealers took 43.5% of the competitive bids acceptedIndirect bidders 41.5%, Direct bidders 15.0%, Primary dealers 43.5%Indirect bidders41.5%62.8%Direct bidders15.0%9.4%Primary dealers43.5%27.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders41.562.8
Direct bidders15.09.4
Primary dealers43.527.8

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$67,697,227,900
Sold$25,884,497,900
Competitive bids accepted$23,938,790,000
Non-competitive bids accepted$61,217,800
Federal Reserve (SOMA) add-on$1,884,490,100
Foreign and international (FIMA) non-competitive$0
High yield, %0.844
Median rate, %0.810
Low rate, %0.700
Interest rate (coupon), %0.750
Bids at the high rate filled, %25.96
Bid-to-cover ratio2.74
Indirect bidders accepted$9,928,500,000
Direct bidders accepted$3,586,000,000
Primary dealers accepted$10,424,290,000
Indirect bidders' share, % (ours)41.5
Direct bidders' share, % (ours)15.0
Primary dealers' share, % (ours)43.5
High minus median, basis points (ours)3.4
Treasury par yield curve, 3-year point, same day, %0.85
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 ratio2.74Last 24 auctions24 of 240 of 243.29
Bid-to-cover ratio2.74Since 10 November 200880 of 877 of 873.25
Bid-to-cover ratio2.74All 103 since 6 May 200381 of 10322 of 1033.22
High yield0.844Last 24 auctions22 of 242 of 240.996
High yield0.844Since 10 November 200850 of 8736 of 870.926
High yield0.844All 170 since 5 May 1981133 of 17036 of 1701.790
Indirect bidders' share41.5Last 24 auctions14 of 2410 of 2444.0
Indirect bidders' share41.5All 87 since 10 November 200829 of 8758 of 8737.8
Direct bidders' share15.0Last 24 auctions11 of 2413 of 2414.4
Direct bidders' share15.0All 87 since 10 November 200832 of 8755 of 8712.0
Primary dealers' share43.5Last 24 auctions12 of 2412 of 2442.6
Primary dealers' share43.5All 87 since 10 November 200860 of 8727 of 8747.4
High minus median, basis points3.4Last 24 auctions7 of 2415 of 243.0
High minus median, basis points3.4Since 10 November 200830 of 8753 of 873.0
High minus median, basis points3.4All 170 since 5 May 198138 of 170128 of 1702.0

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 9 February 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160209_2.pdf. Compiled by 500metrics, "3-year note auction of 9 February 2016 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2016-02-09.

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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