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3-year note auction of 8 March 2016 (new issue)

The 3-year note sold $24 billion at a high yield of 1.039% on , with a bid-to-cover ratio of 2.71.

Coupon
1.000%
Announced
Issued
Matures

High yield

1.039%

Median yield 1.000%

Bid-to-cover

2.71

▼ −0.03 since 9 Feb

Sold

$24.00 billion

$24 billion offered

Indirect bidders

46.2%

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 9 April 2013 to 8 March 2016; the latest at 1.039%.0.3%0.5%0.8%1.0%1.3%1.5%2013201420152016This auction, 1.039%High yield at the last 36 3-year note auctions36 auctions from 9 April 2013 to 8 March 2016; the latest at 1.039%.0.8%1.0%1.2%1.4%2014201520161.039%

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
1.0392.71
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.713.2012 of 120 of 12
High yield1.0391.0346 of 126 of 12
Indirect bidders' share46.250.110 of 122 of 12
Direct bidders' share9.111.19 of 123 of 12
Primary dealers' share44.739.60 of 1212 of 12
High minus median, basis points3.93.54 of 128 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 (79 auctions in between).
  • Primary dealers' share: Highest for a 3-year note since 9 December 2014 (14 auctions in between).

Who bought the 3-year note?

Indirect bidders took 46.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 9 February 2016

Indirect bidders took 46.2% of the competitive bids acceptedIndirect bidders 46.2%, Direct bidders 9.1%, Primary dealers 44.7%Indirect bidders46.2%41.5%Direct bidders9.1%15.0%Primary dealers44.7%43.5%Indirect bidders took 46.2% of the competitive bids acceptedIndirect bidders 46.2%, Direct bidders 9.1%, Primary dealers 44.7%Indirect bidders46.2%41.5%Direct bidders9.1%15.0%Primary dealers44.7%43.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders46.241.5
Direct bidders9.115.0
Primary dealers44.743.5

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$65,038,047,400
Sold$24,000,007,400
Competitive bids accepted$23,946,760,000
Non-competitive bids accepted$53,247,400
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.039
Median rate, %1.000
Low rate, %0.900
Interest rate (coupon), %1.000
Bids at the high rate filled, %19.32
Bid-to-cover ratio2.71
Indirect bidders accepted$11,063,800,000
Direct bidders accepted$2,168,320,000
Primary dealers accepted$10,714,640,000
Indirect bidders' share, % (ours)46.2
Direct bidders' share, % (ours)9.1
Primary dealers' share, % (ours)44.7
High minus median, basis points (ours)3.9
Treasury par yield curve, 3-year point, same day, %1.04
High yield minus that point, basis points (ours)-0.1

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 ratio2.71Last 24 auctions24 of 240 of 243.25
Bid-to-cover ratio2.71Since 10 November 200881 of 887 of 883.25
Bid-to-cover ratio2.71All 104 since 6 May 200382 of 10422 of 1043.22
High yield1.039Last 24 auctions9 of 2415 of 240.996
High yield1.039Since 10 November 200833 of 8855 of 880.925
High yield1.039All 171 since 5 May 1981116 of 17155 of 1711.780
Indirect bidders' share46.2Last 24 auctions11 of 2413 of 2444.0
Indirect bidders' share46.2All 88 since 10 November 200823 of 8865 of 8837.9
Direct bidders' share9.1Last 24 auctions20 of 244 of 2414.4
Direct bidders' share9.1All 88 since 10 November 200863 of 8825 of 8812.0
Primary dealers' share44.7Last 24 auctions10 of 2414 of 2443.7
Primary dealers' share44.7All 88 since 10 November 200855 of 8833 of 8847.3
High minus median, basis points3.9Last 24 auctions4 of 2420 of 243.0
High minus median, basis points3.9Since 10 November 200825 of 8863 of 883.0
High minus median, basis points3.9All 171 since 5 May 198132 of 171139 of 1712.1

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 8 March 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160308_2.pdf. Compiled by 500metrics, "3-year note auction of 8 March 2016 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2016-03-08.

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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