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3-year note auction of 12 June 2017 (new issue)

The 3-year note sold $24 billion at a high yield of 1.500% on , with a bid-to-cover ratio of 3.00.

Coupon
1.500%
Announced
Issued
Matures

High yield

1.500%

Median yield 1.460%

Bid-to-cover

3.00

▲ +0.24 since 9 May

Sold

$24.00 billion

$24 billion offered

Indirect bidders

65.6%

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 July 2014 to 12 June 2017; the latest at 1.500%.0.8%1.0%1.3%1.5%1.8%2014201520162017This auction, 1.500%High yield at the last 36 3-year note auctions36 auctions from 8 July 2014 to 12 June 2017; the latest at 1.500%.0.8%1.0%1.3%1.5%1.8%2015201620171.500%

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
1.5003.00
1.5722.76
1.5252.62
1.6302.74
1.4232.78
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.002.760 of 1212 of 12
High yield1.5001.2343 of 129 of 12
Indirect bidders' share65.651.30 of 1212 of 12
Direct bidders' share6.28.711 of 121 of 12
Primary dealers' share28.239.912 of 120 of 12
High minus median, basis points4.04.48 of 124 of 12

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

  • Bid-to-cover ratio: Highest for a 3-year note since 8 December 2015 (17 auctions in between).
  • Indirect bidders' share: Highest for a 3-year note since 9 November 2009 (90 auctions in between).
  • Primary dealers' share: Lowest for a 3-year note since 12 January 2016 (16 auctions in between).

Who bought the 3-year note?

Indirect bidders took 65.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 9 May 2017

Indirect bidders took 65.6% of the competitive bids acceptedIndirect bidders 65.6%, Direct bidders 6.2%, Primary dealers 28.2%Indirect bidders65.6%50.8%Direct bidders6.2%9.3%Primary dealers28.2%39.9%Indirect bidders took 65.6% of the competitive bids acceptedIndirect bidders 65.6%, Direct bidders 6.2%, Primary dealers 28.2%Indirect bidders65.6%50.8%Direct bidders6.2%9.3%Primary dealers28.2%39.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders65.650.8
Direct bidders6.29.3
Primary dealers28.239.9

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$72,109,807,600
Sold$24,000,079,600
Competitive bids accepted$23,823,072,000
Non-competitive bids accepted$77,007,600
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %1.500
Median rate, %1.460
Low rate, %1.380
Interest rate (coupon), %1.500
Bids at the high rate filled, %83.76
Bid-to-cover ratio3.00
Indirect bidders accepted$15,631,908,000
Direct bidders accepted$1,484,000,000
Primary dealers accepted$6,707,164,000
Indirect bidders' share, % (ours)65.6
Direct bidders' share, % (ours)6.2
Primary dealers' share, % (ours)28.2
High minus median, basis points (ours)4.0
Treasury par yield curve, 3-year point, same day, %1.50
High yield minus that point, basis points (ours)0.0

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 ratio3.00Last 24 auctions6 of 2418 of 242.80
Bid-to-cover ratio3.00Since 10 November 200869 of 10334 of 1033.22
Bid-to-cover ratio3.00All 119 since 6 May 200369 of 11950 of 1193.14
High yield1.500Last 24 auctions3 of 2421 of 241.042
High yield1.500Since 10 November 20088 of 10395 of 1030.930
High yield1.500All 186 since 5 May 198191 of 18695 of 1861.488
Indirect bidders' share65.6Last 24 auctions0 of 2424 of 2450.7
Indirect bidders' share65.6All 103 since 10 November 20081 of 103102 of 10339.4
Direct bidders' share6.2Last 24 auctions23 of 241 of 249.4
Direct bidders' share6.2All 103 since 10 November 200891 of 10312 of 10311.1
Primary dealers' share28.2Last 24 auctions23 of 241 of 2439.8
Primary dealers' share28.2All 103 since 10 November 2008101 of 1032 of 10345.9
High minus median, basis points4.0Last 24 auctions12 of 2411 of 244.0
High minus median, basis points4.0Since 10 November 200833 of 10369 of 1033.1
High minus median, basis points4.0All 186 since 5 May 198137 of 186145 of 1862.2

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 June 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170612_1.pdf. Compiled by 500metrics, "3-year note auction of 12 June 2017 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2017-06-12.

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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