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3-year note auction of 7 May 2019 (new issue)

The 3-year note sold $50.945 billion at a high yield of 2.248% on , with a bid-to-cover ratio of 2.48.

Coupon
2.125%
Announced
Issued
Matures

High yield

2.248%

Median yield 2.223%

Bid-to-cover

2.48

▼ −0.01 since 9 Apr

Sold

$50.95 billion

$38 billion offered

Indirect bidders

37.9%

Of competitive bids accepted

The high yield was the lowest for a 3-year note since 9 January 2018

High yield at each 3-year note auction, %

The high yield was the lowest for a 3-year note since 9 January 201836 auctions from 7 June 2016 to 7 May 2019; the latest at 2.248%.0.0%1.0%2.0%3.0%2016201720182019This auction, 2.248%The high yield was the lowest for a 3-year note since 9 January 201836 auctions from 7 June 2016 to 7 May 2019; the latest at 2.248%.1.0%1.5%2.0%2.5%3.0%2017201820192.248%

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
2.2482.48
2.3012.49
2.4482.56
2.5022.55
2.5592.44
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.482.5611 of 121 of 12
High yield2.2482.67412 of 120 of 12
Indirect bidders' share37.946.012 of 120 of 12
Direct bidders' share20.011.40 of 1212 of 12
Primary dealers' share42.041.66 of 126 of 12
High minus median, basis points2.52.78 of 122 of 12

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

  • Indirect bidders' share: Lowest for a 3-year note since 10 November 2014 (53 auctions in between).
  • Direct bidders' share: Highest for a 3-year note since 9 September 2014 (55 auctions in between).

Who bought the 3-year note?

Primary dealers took 42.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 9 April 2019

Primary dealers took 42.0% of the competitive bids acceptedIndirect bidders 37.9%, Direct bidders 20.0%, Primary dealers 42.0%Indirect bidders37.9%42.7%Direct bidders20.0%18.7%Primary dealers42.0%38.6%Primary dealers took 42.0% of the competitive bids acceptedIndirect bidders 37.9%, Direct bidders 20.0%, Primary dealers 42.0%Indirect bidders37.9%42.7%Direct bidders20.0%18.7%Primary dealers42.0%38.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders37.942.7
Direct bidders20.018.7
Primary dealers42.038.6

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$107,103,717,900
Sold$50,945,077,900
Competitive bids accepted$37,914,860,000
Non-competitive bids accepted$85,228,100
Federal Reserve (SOMA) add-on$12,944,989,800
Foreign and international (FIMA) non-competitive$0
High yield, %2.248
Median rate, %2.223
Low rate, %2.140
Interest rate (coupon), %2.125
Bids at the high rate filled, %74.72
Bid-to-cover ratio2.48
Indirect bidders accepted$14,378,220,000
Direct bidders accepted$7,600,000,000
Primary dealers accepted$15,936,640,000
Indirect bidders' share, % (ours)37.9
Direct bidders' share, % (ours)20.0
Primary dealers' share, % (ours)42.0
High minus median, basis points (ours)2.5
Treasury par yield curve, 3-year point, same day, %2.24
High yield minus that point, basis points (ours)0.8

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 ratio2.48Last 24 auctions23 of 241 of 242.76
Bid-to-cover ratio2.48Since 10 November 2008121 of 1265 of 1263.13
Bid-to-cover ratio2.48All 142 since 6 May 2003122 of 14220 of 1423.02
High yield2.248Last 24 auctions15 of 249 of 242.442
High yield2.248Since 10 November 200815 of 126111 of 1261.042
High yield2.248All 209 since 5 May 198197 of 209112 of 2091.750
Indirect bidders' share37.9Last 24 auctions24 of 240 of 2449.6
Indirect bidders' share37.9All 126 since 10 November 200882 of 12644 of 12642.3
Direct bidders' share20.0Last 24 auctions0 of 2424 of 249.8
Direct bidders' share20.0All 126 since 10 November 200811 of 126115 of 12611.0
Primary dealers' share42.0Last 24 auctions7 of 2417 of 2440.1
Primary dealers' share42.0All 126 since 10 November 200873 of 12653 of 12644.3
High minus median, basis points2.5Last 24 auctions20 of 242 of 244.0
High minus median, basis points2.5Since 10 November 200885 of 12638 of 1263.4
High minus median, basis points2.5All 209 since 5 May 1981103 of 209103 of 2092.5

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 7 May 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20190507_1.pdf. Compiled by 500metrics, "3-year note auction of 7 May 2019 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2019-05-07.

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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