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3-year note auction of 10 July 2018 (new issue)

The 3-year note sold $33.128 billion at a high yield of 2.685% on , with a bid-to-cover ratio of 2.51.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.685%

Median yield 2.660%

Bid-to-cover

2.51

▼ −0.32 since 11 Jun

Sold

$33.13 billion

$33 billion offered

Indirect bidders

39.6%

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 11 August 2015 to 10 July 2018; the latest at 2.685%.0.5%1.0%1.5%2.0%2.5%3.0%2015201620172018This auction, 2.685%The high yield was the highest for a 3-year note since 7 May 200736 auctions from 11 August 2015 to 10 July 2018; the latest at 2.685%.0.5%1.0%1.5%2.0%2.5%3.0%2016201720182.685%

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
2.6852.51
2.6642.83
2.6642.76
2.4502.85
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.512.8612 of 120 of 12
High yield2.6852.0060 of 1212 of 12
Indirect bidders' share39.652.012 of 120 of 12
Direct bidders' share9.19.89 of 123 of 12
Primary dealers' share51.339.00 of 1212 of 12
High minus median, basis points2.54.411 of 120 of 12

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

  • Bid-to-cover ratio: Lowest for a 3-year note since 8 April 2009 (110 auctions in between).
  • Indirect bidders' share: Lowest for a 3-year note since 10 November 2014 (43 auctions in between).
  • Primary dealers' share: Highest for a 3-year note since 10 June 2014 (48 auctions in between).

Who bought the 3-year note?

Primary dealers took 51.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 11 June 2018

Primary dealers took 51.3% of the competitive bids acceptedIndirect bidders 39.6%, Direct bidders 9.1%, Primary dealers 51.3%Indirect bidders39.6%51.4%Direct bidders9.1%9.2%Primary dealers51.3%39.4%Primary dealers took 51.3% of the competitive bids acceptedIndirect bidders 39.6%, Direct bidders 9.1%, Primary dealers 51.3%Indirect bidders39.6%51.4%Direct bidders9.1%9.2%Primary dealers51.3%39.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders39.651.4
Direct bidders9.19.2
Primary dealers51.339.4

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$33,000,000,000
Bids received$82,932,909,400
Sold$33,128,311,900
Competitive bids accepted$32,837,502,500
Non-competitive bids accepted$62,545,000
Federal Reserve (SOMA) add-on$128,264,400
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.685
Median rate, %2.660
Low rate, %2.560
Interest rate (coupon), %2.625
Bids at the high rate filled, %37.03
Bid-to-cover ratio2.51
Indirect bidders accepted$12,997,100,000
Direct bidders accepted$3,000,000,000
Primary dealers accepted$16,840,402,500
Indirect bidders' share, % (ours)39.6
Direct bidders' share, % (ours)9.1
Primary dealers' share, % (ours)51.3
High minus median, basis points (ours)2.5
Treasury par yield curve, 3-year point, same day, %2.69
High yield minus that point, basis points (ours)-0.5

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 ratio2.51Last 24 auctions24 of 240 of 242.83
Bid-to-cover ratio2.51Since 10 November 2008112 of 1164 of 1163.16
Bid-to-cover ratio2.51All 132 since 6 May 2003113 of 13219 of 1323.08
High yield2.685Last 24 auctions0 of 2424 of 241.548
High yield2.685Since 10 November 20080 of 116116 of 1161.000
High yield2.685All 199 since 5 May 198179 of 199120 of 1991.525
Indirect bidders' share39.6Last 24 auctions24 of 240 of 2452.0
Indirect bidders' share39.6All 116 since 10 November 200864 of 11652 of 11641.4
Direct bidders' share9.1Last 24 auctions13 of 2411 of 249.3
Direct bidders' share9.1All 116 since 10 November 200879 of 11637 of 11611.0
Primary dealers' share51.3Last 24 auctions0 of 2424 of 2439.4
Primary dealers' share51.3All 116 since 10 November 200834 of 11682 of 11644.7
High minus median, basis points2.5Last 24 auctions22 of 241 of 244.3
High minus median, basis points2.5Since 10 November 200878 of 11636 of 1163.4
High minus median, basis points2.5All 199 since 5 May 198196 of 199101 of 1992.4

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 10 July 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180710_2.pdf. Compiled by 500metrics, "3-year note auction of 10 July 2018 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2018-07-10.

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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