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3-year note auction of 10 January 2017 (new issue)

The 3-year note sold $25.33 billion at a high yield of 1.472% on , with a bid-to-cover ratio of 2.97.

Coupon
1.375%
Announced
Issued
Matures

High yield

1.472%

Median yield 1.430%

Bid-to-cover

2.97

▲ +0.32 since 12 Dec

Sold

$25.33 billion

$24 billion offered

Indirect bidders

54.6%

Of competitive bids accepted

The high yield was the highest for a 3-year note since 6 April 2010

High yield at each 3-year note auction, %

The high yield was the highest for a 3-year note since 6 April 201036 auctions from 11 February 2014 to 10 January 2017; the latest at 1.472%.0.6%0.8%1.0%1.2%1.4%1.6%2014201520162017This auction, 1.472%The high yield was the highest for a 3-year note since 6 April 201036 auctions from 11 February 2014 to 10 January 2017; the latest at 1.472%.0.6%0.8%1.0%1.2%1.4%1.6%2015201620171.472%

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
1.4722.97
1.4522.65
1.0342.69
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.972.761 of 1211 of 12
High yield1.4720.9380 of 1212 of 12
Indirect bidders' share54.650.15 of 127 of 12
Direct bidders' share6.69.811 of 121 of 12
Primary dealers' share38.840.07 of 125 of 12
High minus median, basis points4.23.44 of 128 of 12

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

Who bought the 3-year note?

Indirect bidders took 54.6% of the competitive bids accepted

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

Indirect bidders took 54.6% of the competitive bids acceptedIndirect bidders 54.6%, Direct bidders 6.6%, Primary dealers 38.8%Indirect bidders54.6%42.6%Direct bidders6.6%9.0%Primary dealers38.8%48.5%Indirect bidders took 54.6% of the competitive bids acceptedIndirect bidders 54.6%, Direct bidders 6.6%, Primary dealers 38.8%Indirect bidders54.6%42.6%Direct bidders6.6%9.0%Primary dealers38.8%48.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders54.642.6
Direct bidders6.69.0
Primary dealers38.848.5

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$72,573,462,900
Sold$25,329,938,900
Competitive bids accepted$23,948,026,000
Non-competitive bids accepted$52,061,300
Federal Reserve (SOMA) add-on$1,329,851,600
Foreign and international (FIMA) non-competitive$0
High yield, %1.472
Median rate, %1.430
Low rate, %1.350
Interest rate (coupon), %1.375
Bids at the high rate filled, %86.68
Bid-to-cover ratio2.97
Indirect bidders accepted$13,075,650,000
Direct bidders accepted$1,591,000,000
Primary dealers accepted$9,281,376,000
Indirect bidders' share, % (ours)54.6
Direct bidders' share, % (ours)6.6
Primary dealers' share, % (ours)38.8
High minus median, basis points (ours)4.2
Treasury par yield curve, 3-year point, same day, %1.47
High yield minus that point, basis points (ours)0.2

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 ratio2.97Last 24 auctions12 of 2412 of 242.96
Bid-to-cover ratio2.97Since 10 November 200872 of 9826 of 983.23
Bid-to-cover ratio2.97All 114 since 6 May 200372 of 11441 of 1143.16
High yield1.472Last 24 auctions0 of 2424 of 241.006
High yield1.472Since 10 November 20089 of 9889 of 980.927
High yield1.472All 181 since 5 May 198192 of 18189 of 1811.487
Indirect bidders' share54.6Last 24 auctions5 of 2419 of 2449.2
Indirect bidders' share54.6All 98 since 10 November 20088 of 9890 of 9838.6
Direct bidders' share6.6Last 24 auctions23 of 241 of 2410.2
Direct bidders' share6.6All 98 since 10 November 200886 of 9812 of 9811.5
Primary dealers' share38.8Last 24 auctions16 of 248 of 2439.6
Primary dealers' share38.8All 98 since 10 November 200880 of 9818 of 9846.9
High minus median, basis points4.2Last 24 auctions5 of 2418 of 243.5
High minus median, basis points4.2Since 10 November 200825 of 9872 of 983.0
High minus median, basis points4.2All 181 since 5 May 198128 of 181151 of 1812.2

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 10 January 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170110_2.pdf. Compiled by 500metrics, "3-year note auction of 10 January 2017 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2017-01-10.

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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