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3-year note auction of 11 July 2016 (new issue)

The 3-year note sold $25.563 billion at a high yield of 0.765% on , with a bid-to-cover ratio of 2.69.

Coupon
0.750%
Announced
Issued
Matures

High yield

0.765%

Median yield 0.730%

Bid-to-cover

2.69

▼ −0.10 since 7 Jun

Sold

$25.56 billion

$24 billion offered

Indirect bidders

44.7%

Of competitive bids accepted

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

High yield at each 3-year note auction, %

The high yield was the lowest for a 3-year note since 11 February 201436 auctions from 6 August 2013 to 11 July 2016; the latest at 0.765%.0.6%0.8%1.0%1.2%1.4%2013201420152016This auction, 0.765%The high yield was the lowest for a 3-year note since 11 February 201436 auctions from 6 August 2013 to 11 July 2016; the latest at 0.765%.0.6%0.8%1.0%1.2%1.4%2014201520160.765%

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
0.7652.69
0.9302.79
0.8752.93
0.8902.72
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.692.9412 of 120 of 12
High yield0.7650.97212 of 120 of 12
Indirect bidders' share44.747.910 of 122 of 12
Direct bidders' share15.811.11 of 1211 of 12
Primary dealers' share39.439.96 of 126 of 12
High minus median, basis points3.54.08 of 123 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 (83 auctions in between).

Who bought the 3-year note?

Indirect bidders took 44.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 7 June 2016

Indirect bidders took 44.7% of the competitive bids acceptedIndirect bidders 44.7%, Direct bidders 15.8%, Primary dealers 39.4%Indirect bidders44.7%48.1%Direct bidders15.8%11.1%Primary dealers39.4%40.8%Indirect bidders took 44.7% of the competitive bids acceptedIndirect bidders 44.7%, Direct bidders 15.8%, Primary dealers 39.4%Indirect bidders44.7%48.1%Direct bidders15.8%11.1%Primary dealers39.4%40.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders44.748.1
Direct bidders15.811.1
Primary dealers39.440.8

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$66,016,425,300
Sold$25,563,200,300
Competitive bids accepted$23,952,075,000
Non-competitive bids accepted$47,951,700
Federal Reserve (SOMA) add-on$1,563,173,600
Foreign and international (FIMA) non-competitive$0
High yield, %0.765
Median rate, %0.730
Low rate, %0.600
Interest rate (coupon), %0.750
Bids at the high rate filled, %63.62
Bid-to-cover ratio2.69
Indirect bidders accepted$10,718,205,000
Direct bidders accepted$3,791,000,000
Primary dealers accepted$9,442,870,000
Indirect bidders' share, % (ours)44.7
Direct bidders' share, % (ours)15.8
Primary dealers' share, % (ours)39.4
High minus median, basis points (ours)3.5
Treasury par yield curve, 3-year point, same day, %0.77
High yield minus that point, basis points (ours)-0.5

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 ratio2.69Last 24 auctions24 of 240 of 243.18
Bid-to-cover ratio2.69Since 10 November 200885 of 927 of 923.24
Bid-to-cover ratio2.69All 108 since 6 May 200386 of 10822 of 1083.20
High yield0.765Last 24 auctions24 of 240 of 240.999
High yield0.765Since 10 November 200859 of 9232 of 920.925
High yield0.765All 175 since 5 May 1981142 of 17532 of 1751.519
Indirect bidders' share44.7Last 24 auctions16 of 248 of 2447.7
Indirect bidders' share44.7All 92 since 10 November 200829 of 9263 of 9238.3
Direct bidders' share15.8Last 24 auctions4 of 2420 of 2411.3
Direct bidders' share15.8All 92 since 10 November 200826 of 9266 of 9211.8
Primary dealers' share39.4Last 24 auctions16 of 248 of 2440.9
Primary dealers' share39.4All 92 since 10 November 200874 of 9218 of 9247.1
High minus median, basis points3.5Last 24 auctions8 of 2414 of 243.4
High minus median, basis points3.5Since 10 November 200831 of 9259 of 923.0
High minus median, basis points3.5All 175 since 5 May 198138 of 175134 of 1752.1

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 11 July 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160711_3.pdf. Compiled by 500metrics, "3-year note auction of 11 July 2016 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2016-07-11.

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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