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3-year note auction of 11 September 2017 (new issue)

The 3-year note sold $24 billion at a high yield of 1.433% on , with a bid-to-cover ratio of 2.70.

Coupon
1.375%
Announced
Issued
Matures

High yield

1.433%

Median yield 1.380%

Bid-to-cover

2.70

▼ −0.43 since 8 Aug

Sold

$24.00 billion

$24 billion offered

Indirect bidders

46.2%

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 7 October 2014 to 11 September 2017; the latest at 1.433%.0.8%1.0%1.3%1.5%1.8%2014201520162017This auction, 1.433%High yield at the last 36 3-year note auctions36 auctions from 7 October 2014 to 11 September 2017; the latest at 1.433%.0.8%1.0%1.3%1.5%1.8%201620171.433%

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
1.4332.70
1.5203.13
1.5732.87
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.702.789 of 123 of 12
High yield1.4331.4868 of 124 of 12
Indirect bidders' share46.252.410 of 122 of 12
Direct bidders' share10.48.30 of 1212 of 12
Primary dealers' share43.439.32 of 1210 of 12
High minus median, basis points5.34.23 of 129 of 12

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

  • Direct bidders' share: Highest for a 3-year note since 11 July 2016 (13 auctions in between).

Who bought the 3-year note?

Indirect bidders took 46.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 8 August 2017

Indirect bidders took 46.2% of the competitive bids acceptedIndirect bidders 46.2%, Direct bidders 10.4%, Primary dealers 43.4%Indirect bidders46.2%64.1%Direct bidders10.4%10.2%Primary dealers43.4%25.8%Indirect bidders took 46.2% of the competitive bids acceptedIndirect bidders 46.2%, Direct bidders 10.4%, Primary dealers 43.4%Indirect bidders46.2%64.1%Direct bidders10.4%10.2%Primary dealers43.4%25.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders46.264.1
Direct bidders10.410.2
Primary dealers43.425.8

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$64,883,398,300
Sold$24,000,020,800
Competitive bids accepted$23,852,322,500
Non-competitive bids accepted$47,698,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %1.433
Median rate, %1.380
Low rate, %1.188
Interest rate (coupon), %1.375
Bids at the high rate filled, %87.71
Bid-to-cover ratio2.70
Indirect bidders accepted$11,009,757,500
Direct bidders accepted$2,483,000,000
Primary dealers accepted$10,359,565,000
Indirect bidders' share, % (ours)46.2
Direct bidders' share, % (ours)10.4
Primary dealers' share, % (ours)43.4
High minus median, basis points (ours)5.3
Treasury par yield curve, 3-year point, same day, %1.44
High yield minus that point, basis points (ours)-0.7

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 ratio2.70Last 24 auctions20 of 244 of 242.80
Bid-to-cover ratio2.70Since 10 November 200895 of 10611 of 1063.21
Bid-to-cover ratio2.70All 122 since 6 May 200396 of 12226 of 1223.14
High yield1.433Last 24 auctions8 of 2416 of 241.115
High yield1.433Since 10 November 200819 of 10687 of 1060.940
High yield1.433All 189 since 5 May 1981102 of 18987 of 1891.490
Indirect bidders' share46.2Last 24 auctions19 of 245 of 2451.4
Indirect bidders' share46.2All 106 since 10 November 200838 of 10668 of 10640.1
Direct bidders' share10.4Last 24 auctions7 of 2417 of 249.4
Direct bidders' share10.4All 106 since 10 November 200858 of 10648 of 10611.1
Primary dealers' share43.4Last 24 auctions5 of 2419 of 2439.6
Primary dealers' share43.4All 106 since 10 November 200864 of 10642 of 10645.6
High minus median, basis points5.3Last 24 auctions3 of 2421 of 244.0
High minus median, basis points5.3Since 10 November 200815 of 10689 of 1063.1
High minus median, basis points5.3All 189 since 5 May 198116 of 189171 of 1892.3

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 September 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170911_3.pdf. Compiled by 500metrics, "3-year note auction of 11 September 2017 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2017-09-11.

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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