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3-year note auction of 12 March 2018 (new issue)

The 3-year note sold $28 billion at a high yield of 2.436% on , with a bid-to-cover ratio of 2.94.

Coupon
2.375%
Announced
Issued
Matures

High yield

2.436%

Median yield 2.400%

Bid-to-cover

2.94

▼ −0.06 since 6 Feb

Sold

$28.00 billion

$28 billion offered

Indirect bidders

50.0%

Of competitive bids accepted

The high yield was the highest for a 3-year note since 7 May 2007

High yield at each 3-year note auction, %

The high yield was the highest for a 3-year note since 7 May 200736 auctions from 7 April 2015 to 12 March 2018; the latest at 2.436%.0.5%1.0%1.5%2.0%2.5%2015201620172018This auction, 2.436%The high yield was the highest for a 3-year note since 7 May 200736 auctions from 7 April 2015 to 12 March 2018; the latest at 2.436%.0.5%1.0%1.5%2.0%2.5%2016201720182.436%

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
2.4362.94
2.2803.00
2.0803.13
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.942.855 of 127 of 12
High yield2.4361.6020 of 1212 of 12
Indirect bidders' share50.053.19 of 123 of 12
Direct bidders' share9.39.26 of 126 of 12
Primary dealers' share40.738.12 of 1210 of 12
High minus median, basis points3.64.612 of 120 of 12

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

  • High minus median, basis points: Lowest for a 3-year note since 12 December 2016 (14 auctions in between).

Who bought the 3-year note?

Indirect bidders took 50.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 6 February 2018

Indirect bidders took 50.0% of the competitive bids acceptedIndirect bidders 50.0%, Direct bidders 9.3%, Primary dealers 40.7%Indirect bidders50.0%49.8%Direct bidders9.3%9.7%Primary dealers40.7%40.5%Indirect bidders took 50.0% of the competitive bids acceptedIndirect bidders 50.0%, Direct bidders 9.3%, Primary dealers 40.7%Indirect bidders50.0%49.8%Direct bidders9.3%9.7%Primary dealers40.7%40.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.049.8
Direct bidders9.39.7
Primary dealers40.740.5

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$28,000,000,000
Bids received$82,241,962,600
Sold$28,000,025,100
Competitive bids accepted$27,687,462,500
Non-competitive bids accepted$112,562,600
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$200,000,000
High yield, %2.436
Median rate, %2.400
Low rate, %2.320
Interest rate (coupon), %2.375
Bids at the high rate filled, %17.35
Bid-to-cover ratio2.94
Indirect bidders accepted$13,840,075,000
Direct bidders accepted$2,575,000,000
Primary dealers accepted$11,272,387,500
Indirect bidders' share, % (ours)50.0
Direct bidders' share, % (ours)9.3
Primary dealers' share, % (ours)40.7
High minus median, basis points (ours)3.6
Treasury par yield curve, 3-year point, same day, %2.43
High yield minus that point, basis points (ours)0.6

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 ratio2.94Last 24 auctions7 of 2417 of 242.78
Bid-to-cover ratio2.94Since 10 November 200880 of 11231 of 1123.18
Bid-to-cover ratio2.94All 128 since 6 May 200381 of 12846 of 1283.13
High yield2.436Last 24 auctions0 of 2424 of 241.462
High yield2.436Since 10 November 20080 of 112112 of 1120.996
High yield2.436All 195 since 5 May 198180 of 195115 of 1951.519
Indirect bidders' share50.0Last 24 auctions16 of 248 of 2453.1
Indirect bidders' share50.0All 112 since 10 November 200831 of 11281 of 11240.7
Direct bidders' share9.3Last 24 auctions12 of 2412 of 249.2
Direct bidders' share9.3All 112 since 10 November 200874 of 11238 of 11211.0
Primary dealers' share40.7Last 24 auctions6 of 2418 of 2438.7
Primary dealers' share40.7All 112 since 10 November 200873 of 11239 of 11244.9
High minus median, basis points3.6Last 24 auctions19 of 245 of 244.4
High minus median, basis points3.6Since 10 November 200846 of 11265 of 1123.4
High minus median, basis points3.6All 195 since 5 May 198153 of 195141 of 1952.4

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 12 March 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180312_1.pdf. Compiled by 500metrics, "3-year note auction of 12 March 2018 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2018-03-12.

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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