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

The 3-year note sold $24 billion at a high yield of 1.045% on , with a bid-to-cover ratio of 2.92.

Coupon
1.000%
Announced
Issued
Matures

High yield

1.045%

Median yield 1.000%

Bid-to-cover

2.92

▲ +0.15 since 12 Sep

Sold

$24.00 billion

$24 billion offered

Indirect bidders

52.1%

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 November 2013 to 12 October 2016; the latest at 1.045%.0.6%0.8%1.0%1.2%1.4%201420152016This auction, 1.045%High yield at the last 36 3-year note auctions36 auctions from 12 November 2013 to 12 October 2016; the latest at 1.045%.0.6%0.8%1.0%1.2%1.4%201520161.045%

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
1.0452.92
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.922.805 of 127 of 12
High yield1.0450.9123 of 129 of 12
Indirect bidders' share52.147.95 of 127 of 12
Direct bidders' share10.111.18 of 124 of 12
Primary dealers' share37.740.07 of 125 of 12
High minus median, basis points4.53.63 of 129 of 12

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

Who bought the 3-year note?

Indirect bidders took 52.1% of the competitive bids accepted

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

Indirect bidders took 52.1% of the competitive bids acceptedIndirect bidders 52.1%, Direct bidders 10.1%, Primary dealers 37.7%Indirect bidders52.1%54.8%Direct bidders10.1%4.7%Primary dealers37.7%40.5%Indirect bidders took 52.1% of the competitive bids acceptedIndirect bidders 52.1%, Direct bidders 10.1%, Primary dealers 37.7%Indirect bidders52.1%54.8%Direct bidders10.1%4.7%Primary dealers37.7%40.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders52.154.8
Direct bidders10.14.7
Primary dealers37.740.5

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$70,122,345,700
Sold$24,000,052,900
Competitive bids accepted$23,960,507,200
Non-competitive bids accepted$39,545,700
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.045
Median rate, %1.000
Low rate, %0.900
Interest rate (coupon), %1.000
Bids at the high rate filled, %56.64
Bid-to-cover ratio2.92
Indirect bidders accepted$12,492,400,000
Direct bidders accepted$2,423,960,000
Primary dealers accepted$9,044,147,200
Indirect bidders' share, % (ours)52.1
Direct bidders' share, % (ours)10.1
Primary dealers' share, % (ours)37.7
High minus median, basis points (ours)4.5
Treasury par yield curve, 3-year point, same day, %0.99
High yield minus that point, basis points (ours)5.5

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 ratio2.92Last 24 auctions17 of 247 of 243.15
Bid-to-cover ratio2.92Since 10 November 200876 of 9519 of 953.24
Bid-to-cover ratio2.92All 111 since 6 May 200377 of 11134 of 1113.18
High yield1.045Last 24 auctions8 of 2416 of 240.996
High yield1.045Since 10 November 200833 of 9562 of 950.924
High yield1.045All 178 since 5 May 1981116 of 17862 of 1781.490
Indirect bidders' share52.1Last 24 auctions7 of 2417 of 2448.5
Indirect bidders' share52.1All 95 since 10 November 200813 of 9582 of 9538.5
Direct bidders' share10.1Last 24 auctions14 of 2410 of 2411.1
Direct bidders' share10.1All 95 since 10 November 200861 of 9534 of 9511.7
Primary dealers' share37.7Last 24 auctions18 of 246 of 2440.1
Primary dealers' share37.7All 95 since 10 November 200883 of 9512 of 9546.8
High minus median, basis points4.5Last 24 auctions4 of 2420 of 243.4
High minus median, basis points4.5Since 10 November 200819 of 9576 of 953.0
High minus median, basis points4.5All 178 since 5 May 198122 of 178156 of 1782.2

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 October 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20161012_1.pdf. Compiled by 500metrics, "3-year note auction of 12 October 2016 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2016-10-12.

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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