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

The 3-year note sold $24 billion at a high yield of 1.657% on , with a bid-to-cover ratio of 2.83.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.657%

Median yield 1.610%

Bid-to-cover

2.83

▲ +0.13 since 11 Sep

Sold

$24.00 billion

$24 billion offered

Indirect bidders

54.3%

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 10 November 2014 to 11 October 2017; the latest at 1.657%.0.8%1.0%1.3%1.5%1.8%201520162017This auction, 1.657%The high yield was the highest for a 3-year note since 6 April 201036 auctions from 10 November 2014 to 11 October 2017; the latest at 1.657%.0.8%1.0%1.3%1.5%1.8%201620171.657%

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
1.6572.83
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.832.775 of 127 of 12
High yield1.6571.4860 of 1212 of 12
Indirect bidders' share54.352.04 of 128 of 12
Direct bidders' share7.18.710 of 122 of 12
Primary dealers' share38.639.37 of 125 of 12
High minus median, basis points4.74.44 of 128 of 12

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

Who bought the 3-year note?

Indirect bidders took 54.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 11 September 2017

Indirect bidders took 54.3% of the competitive bids acceptedIndirect bidders 54.3%, Direct bidders 7.1%, Primary dealers 38.6%Indirect bidders54.3%46.2%Direct bidders7.1%10.4%Primary dealers38.6%43.4%Indirect bidders took 54.3% of the competitive bids acceptedIndirect bidders 54.3%, Direct bidders 7.1%, Primary dealers 38.6%Indirect bidders54.3%46.2%Direct bidders7.1%10.4%Primary dealers38.6%43.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders54.346.2
Direct bidders7.110.4
Primary dealers38.643.4

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$68,022,781,200
Sold$24,000,066,200
Competitive bids accepted$23,823,582,000
Non-competitive bids accepted$76,484,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %1.657
Median rate, %1.610
Low rate, %1.250
Interest rate (coupon), %1.625
Bids at the high rate filled, %65.06
Bid-to-cover ratio2.83
Indirect bidders accepted$12,937,910,000
Direct bidders accepted$1,684,362,000
Primary dealers accepted$9,201,310,000
Indirect bidders' share, % (ours)54.3
Direct bidders' share, % (ours)7.1
Primary dealers' share, % (ours)38.6
High minus median, basis points (ours)4.7
Treasury par yield curve, 3-year point, same day, %1.66
High yield minus that point, basis points (ours)-0.3

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 ratio2.83Last 24 auctions10 of 2414 of 242.78
Bid-to-cover ratio2.83Since 10 November 200883 of 10723 of 1073.21
Bid-to-cover ratio2.83All 123 since 6 May 200384 of 12338 of 1233.13
High yield1.657Last 24 auctions0 of 2424 of 241.214
High yield1.657Since 10 November 20084 of 107103 of 1070.947
High yield1.657All 190 since 5 May 198187 of 190103 of 1901.490
Indirect bidders' share54.3Last 24 auctions9 of 2415 of 2451.3
Indirect bidders' share54.3All 107 since 10 November 200812 of 10795 of 10740.3
Direct bidders' share7.1Last 24 auctions21 of 243 of 249.7
Direct bidders' share7.1All 107 since 10 November 200892 of 10715 of 10711.1
Primary dealers' share38.6Last 24 auctions14 of 2410 of 2439.6
Primary dealers' share38.6All 107 since 10 November 200886 of 10721 of 10745.4
High minus median, basis points4.7Last 24 auctions7 of 2417 of 244.0
High minus median, basis points4.7Since 10 November 200822 of 10785 of 1073.1
High minus median, basis points4.7All 190 since 5 May 198125 of 190165 of 1902.4

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 October 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20171011_1.pdf. Compiled by 500metrics, "3-year note auction of 11 October 2017 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2017-10-11.

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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