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

The 3-year note sold $24 billion at a high yield of 1.932% on , with a bid-to-cover ratio of 3.15.

Coupon
1.875%
Announced
Issued
Matures

High yield

1.932%

Median yield 1.890%

Bid-to-cover

3.15

▲ +0.39 since 7 Nov

Sold

$24.00 billion

$24 billion offered

Indirect bidders

59.0%

Of competitive bids accepted

The high yield was the highest for a 3-year note since 9 June 2009

High yield at each 3-year note auction, %

The high yield was the highest for a 3-year note since 9 June 200936 auctions from 12 January 2015 to 11 December 2017; the latest at 1.932%.0.5%1.0%1.5%2.0%201520162017This auction, 1.932%The high yield was the highest for a 3-year note since 9 June 200936 auctions from 12 January 2015 to 11 December 2017; the latest at 1.932%.0.5%1.0%1.5%2.0%201620171.932%

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
1.9323.15
1.7502.76
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.152.770 of 1212 of 12
High yield1.9321.5220 of 1212 of 12
Indirect bidders' share59.053.12 of 1210 of 12
Direct bidders' share7.48.79 of 123 of 12
Primary dealers' share33.638.710 of 122 of 12
High minus median, basis points4.24.68 of 123 of 12

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

  • Bid-to-cover ratio: Highest for a 3-year note since 8 September 2015 (26 auctions in between).

Who bought the 3-year note?

Indirect bidders took 59.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 7 November 2017

Indirect bidders took 59.0% of the competitive bids acceptedIndirect bidders 59.0%, Direct bidders 7.4%, Primary dealers 33.6%Indirect bidders59.0%53.5%Direct bidders7.4%9.0%Primary dealers33.6%37.5%Indirect bidders took 59.0% of the competitive bids acceptedIndirect bidders 59.0%, Direct bidders 7.4%, Primary dealers 33.6%Indirect bidders59.0%53.5%Direct bidders7.4%9.0%Primary dealers33.6%37.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders59.053.5
Direct bidders7.49.0
Primary dealers33.637.5

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$75,582,119,500
Sold$24,000,009,500
Competitive bids accepted$23,846,190,000
Non-competitive bids accepted$53,819,500
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %1.932
Median rate, %1.890
Low rate, %1.688
Interest rate (coupon), %1.875
Bids at the high rate filled, %71.27
Bid-to-cover ratio3.15
Indirect bidders accepted$14,080,300,000
Direct bidders accepted$1,762,270,000
Primary dealers accepted$8,003,620,000
Indirect bidders' share, % (ours)59.0
Direct bidders' share, % (ours)7.4
Primary dealers' share, % (ours)33.6
High minus median, basis points (ours)4.2
Treasury par yield curve, 3-year point, same day, %1.95
High yield minus that point, basis points (ours)-1.8

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 ratio3.15Last 24 auctions0 of 2424 of 242.78
Bid-to-cover ratio3.15Since 10 November 200858 of 10950 of 1093.20
Bid-to-cover ratio3.15All 125 since 6 May 200358 of 12566 of 1253.13
High yield1.932Last 24 auctions0 of 2424 of 241.339
High yield1.932Since 10 November 20081 of 109108 of 1090.992
High yield1.932All 192 since 5 May 198184 of 192108 of 1921.495
Indirect bidders' share59.0Last 24 auctions4 of 2420 of 2452.4
Indirect bidders' share59.0All 109 since 10 November 20087 of 109102 of 10940.5
Direct bidders' share7.4Last 24 auctions20 of 244 of 249.4
Direct bidders' share7.4All 109 since 10 November 200892 of 10917 of 10911.1
Primary dealers' share33.6Last 24 auctions19 of 245 of 2438.7
Primary dealers' share33.6All 109 since 10 November 2008102 of 1097 of 10945.2
High minus median, basis points4.2Last 24 auctions12 of 2411 of 244.2
High minus median, basis points4.2Since 10 November 200833 of 10974 of 1093.2
High minus median, basis points4.2All 192 since 5 May 198136 of 192153 of 1922.4

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 December 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20171211_2.pdf. Compiled by 500metrics, "3-year note auction of 11 December 2017 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2017-12-11.

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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