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

The 3-year note sold $24 billion at a high yield of 0.947% on , with a bid-to-cover ratio of 2.77.

Coupon
0.875%
Announced
Issued
Matures

High yield

0.947%

Median yield 0.919%

Bid-to-cover

2.77

▼ −0.21 since 9 Aug

Sold

$24.00 billion

$24 billion offered

Indirect bidders

54.8%

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 8 October 2013 to 12 September 2016; the latest at 0.947%.0.6%0.8%1.0%1.2%1.4%2013201420152016This auction, 0.947%High yield at the last 36 3-year note auctions36 auctions from 8 October 2013 to 12 September 2016; the latest at 0.947%.0.6%0.8%1.0%1.2%1.4%201520160.947%

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
0.9472.77
0.8502.98
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.772.888 of 124 of 12
High yield0.9470.9125 of 127 of 12
Indirect bidders' share54.847.94 of 128 of 12
Direct bidders' share4.711.112 of 120 of 12
Primary dealers' share40.540.16 of 126 of 12
High minus median, basis points2.83.812 of 120 of 12

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

  • Direct bidders' share: Lowest for a 3-year note since 8 December 2009 (80 auctions in between).
  • High minus median, basis points: Lowest for a 3-year note since 10 March 2015 (17 auctions in between).

Who bought the 3-year note?

Indirect bidders took 54.8% of the competitive bids accepted

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

Indirect bidders took 54.8% of the competitive bids acceptedIndirect bidders 54.8%, Direct bidders 4.7%, Primary dealers 40.5%Indirect bidders54.8%56.9%Direct bidders4.7%9.5%Primary dealers40.5%33.7%Indirect bidders took 54.8% of the competitive bids acceptedIndirect bidders 54.8%, Direct bidders 4.7%, Primary dealers 40.5%Indirect bidders54.8%56.9%Direct bidders4.7%9.5%Primary dealers40.5%33.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders54.856.9
Direct bidders4.79.5
Primary dealers40.533.7

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$66,550,139,100
Sold$24,000,039,100
Competitive bids accepted$23,952,000,000
Non-competitive bids accepted$48,039,100
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %0.947
Median rate, %0.919
Low rate, %0.800
Interest rate (coupon), %0.875
Bids at the high rate filled, %34.98
Bid-to-cover ratio2.77
Indirect bidders accepted$13,125,020,000
Direct bidders accepted$1,115,980,000
Primary dealers accepted$9,711,000,000
Indirect bidders' share, % (ours)54.8
Direct bidders' share, % (ours)4.7
Primary dealers' share, % (ours)40.5
High minus median, basis points (ours)2.8
Treasury par yield curve, 3-year point, same day, %0.92
High yield minus that point, basis points (ours)2.7

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 ratio2.77Last 24 auctions20 of 244 of 243.16
Bid-to-cover ratio2.77Since 10 November 200882 of 9412 of 943.24
Bid-to-cover ratio2.77All 110 since 6 May 200383 of 11027 of 1103.19
High yield0.947Last 24 auctions14 of 2410 of 240.999
High yield0.947Since 10 November 200841 of 9453 of 940.918
High yield0.947All 177 since 5 May 1981124 of 17753 of 1771.490
Indirect bidders' share54.8Last 24 auctions4 of 2420 of 2447.9
Indirect bidders' share54.8All 94 since 10 November 20087 of 9487 of 9438.4
Direct bidders' share4.7Last 24 auctions24 of 240 of 2411.1
Direct bidders' share4.7All 94 since 10 November 200885 of 949 of 9411.8
Primary dealers' share40.5Last 24 auctions11 of 2413 of 2440.1
Primary dealers' share40.5All 94 since 10 November 200869 of 9425 of 9446.9
High minus median, basis points2.8Last 24 auctions20 of 244 of 243.4
High minus median, basis points2.8Since 10 November 200853 of 9441 of 943.0
High minus median, basis points2.8All 177 since 5 May 198170 of 177107 of 1772.1

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 12 September 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160912_4.pdf. Compiled by 500metrics, "3-year note auction of 12 September 2016 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2016-09-12.

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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