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3-year note auction of 11 December 2018 (new issue)

The 3-year note sold $38 billion at a high yield of 2.748% on , with a bid-to-cover ratio of 2.59.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.748%

Median yield 2.709%

Bid-to-cover

2.59

▲ +0.05 since 5 Nov

Sold

$38.00 billion

$38 billion offered

Indirect bidders

50.5%

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 12 January 2016 to 11 December 2018; the latest at 2.748%.0.0%1.0%2.0%3.0%201620172018This auction, 2.748%High yield at the last 36 3-year note auctions36 auctions from 12 January 2016 to 11 December 2018; the latest at 2.748%.1.0%1.5%2.0%2.5%3.0%201720182.748%

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
2.7482.59
2.9832.54
2.9892.56
2.8212.68
2.7652.65
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.592.809 of 123 of 12
High yield2.7482.6644 of 128 of 12
Indirect bidders' share50.548.33 of 129 of 12
Direct bidders' share12.59.70 of 1212 of 12
Primary dealers' share37.041.510 of 122 of 12
High minus median, basis points3.93.55 of 127 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 (28 auctions in between).

Who bought the 3-year note?

Indirect bidders took 50.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 5 November 2018

Indirect bidders took 50.5% of the competitive bids acceptedIndirect bidders 50.5%, Direct bidders 12.5%, Primary dealers 37.0%Indirect bidders50.5%49.1%Direct bidders12.5%3.0%Primary dealers37.0%47.9%Indirect bidders took 50.5% of the competitive bids acceptedIndirect bidders 50.5%, Direct bidders 12.5%, Primary dealers 37.0%Indirect bidders50.5%49.1%Direct bidders12.5%3.0%Primary dealers37.0%47.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.549.1
Direct bidders12.53.0
Primary dealers37.047.9

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$38,000,000,000
Bids received$98,485,199,200
Sold$38,000,030,400
Competitive bids accepted$37,794,031,200
Non-competitive bids accepted$105,999,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.748
Median rate, %2.709
Low rate, %2.630
Interest rate (coupon), %2.625
Bids at the high rate filled, %84.56
Bid-to-cover ratio2.59
Indirect bidders accepted$19,083,371,200
Direct bidders accepted$4,737,000,000
Primary dealers accepted$13,973,660,000
Indirect bidders' share, % (ours)50.5
Direct bidders' share, % (ours)12.5
Primary dealers' share, % (ours)37.0
High minus median, basis points (ours)3.9
Treasury par yield curve, 3-year point, same day, %2.78
High yield minus that point, basis points (ours)-3.2

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 ratio2.59Last 24 auctions21 of 243 of 242.77
Bid-to-cover ratio2.59Since 10 November 2008114 of 1217 of 1213.14
Bid-to-cover ratio2.59All 137 since 6 May 2003115 of 13722 of 1373.05
High yield2.748Last 24 auctions4 of 2420 of 241.841
High yield2.748Since 10 November 20084 of 121117 of 1211.027
High yield2.748All 204 since 5 May 198183 of 204121 of 2041.602
Indirect bidders' share50.5Last 24 auctions12 of 2412 of 2450.4
Indirect bidders' share50.5All 121 since 10 November 200832 of 12189 of 12142.0
Direct bidders' share12.5Last 24 auctions0 of 2424 of 249.3
Direct bidders' share12.5All 121 since 10 November 200843 of 12178 of 12110.7
Primary dealers' share37.0Last 24 auctions19 of 245 of 2440.2
Primary dealers' share37.0All 121 since 10 November 2008106 of 12115 of 12144.7
High minus median, basis points3.9Last 24 auctions16 of 248 of 244.2
High minus median, basis points3.9Since 10 November 200845 of 12175 of 1213.3
High minus median, basis points3.9All 204 since 5 May 198152 of 204151 of 2042.4

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 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20181211_1.pdf. Compiled by 500metrics, "3-year note auction of 11 December 2018 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2018-12-11.

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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