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3-year note auction of 9 December 2019 (new issue)

The 3-year note sold $38 billion at a high yield of 1.632% on , with a bid-to-cover ratio of 2.56.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.632%

Median yield 1.600%

Bid-to-cover

2.56

▲ +0.13 since 8 Oct

Sold

$38.00 billion

$38 billion offered

Indirect bidders

49.1%

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 December 2016 to 9 December 2019; the latest at 1.632%.1.0%1.5%2.0%2.5%3.0%201720182019This auction, 1.632%High yield at the last 36 3-year note auctions36 auctions from 12 December 2016 to 9 December 2019; the latest at 1.632%.1.0%1.5%2.0%2.5%3.0%201820191.632%

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
1.6322.56
1.4132.43
1.5732.42
1.5622.41
1.8572.39
1.8612.62
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.562.482 of 129 of 12
High yield1.6322.2749 of 123 of 12
Indirect bidders' share49.146.44 of 128 of 12
Direct bidders' share23.817.30 of 1212 of 12
Primary dealers' share27.137.312 of 120 of 12
High minus median, basis points3.23.26 of 125 of 12

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

  • Direct bidders' share: Highest for a 3-year note since 6 May 2014 (65 auctions in between).
  • Primary dealers' share: Lowest for a 3-year note since 8 August 2017 (26 auctions in between).

Who bought the 3-year note?

Indirect bidders took 49.1% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 8 October 2019

Indirect bidders took 49.1% of the competitive bids acceptedIndirect bidders 49.1%, Direct bidders 23.8%, Primary dealers 27.1%Indirect bidders49.1%45.8%Direct bidders23.8%16.9%Primary dealers27.1%37.3%Indirect bidders took 49.1% of the competitive bids acceptedIndirect bidders 49.1%, Direct bidders 23.8%, Primary dealers 27.1%Indirect bidders49.1%45.8%Direct bidders23.8%16.9%Primary dealers27.1%37.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders49.145.8
Direct bidders23.816.9
Primary dealers27.137.3

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$97,286,267,000
Sold$38,000,047,000
Competitive bids accepted$37,843,440,000
Non-competitive bids accepted$56,607,000
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %1.632
Median rate, %1.600
Low rate, %1.520
Interest rate (coupon), %1.625
Bids at the high rate filled, %89.20
Bid-to-cover ratio2.56
Indirect bidders accepted$18,574,940,000
Direct bidders accepted$9,018,000,000
Primary dealers accepted$10,250,500,000
Indirect bidders' share, % (ours)49.1
Direct bidders' share, % (ours)23.8
Primary dealers' share, % (ours)27.1
High minus median, basis points (ours)3.2
Treasury par yield curve, 3-year point, same day, %1.63
High yield minus that point, basis points (ours)0.2

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 ratio2.56Last 24 auctions12 of 2410 of 242.58
Bid-to-cover ratio2.56Since 10 November 2008116 of 13214 of 1323.08
Bid-to-cover ratio2.56All 148 since 6 May 2003117 of 14829 of 1482.99
High yield1.632Last 24 auctions21 of 243 of 242.442
High yield1.632Since 10 November 200826 of 132106 of 1321.056
High yield1.632All 215 since 5 May 1981109 of 215106 of 2151.750
Indirect bidders' share49.1Last 24 auctions10 of 2414 of 2447.2
Indirect bidders' share49.1All 132 since 10 November 200840 of 13292 of 13242.6
Direct bidders' share23.8Last 24 auctions0 of 2424 of 2411.8
Direct bidders' share23.8All 132 since 10 November 20085 of 132127 of 13211.1
Primary dealers' share27.1Last 24 auctions24 of 240 of 2439.9
Primary dealers' share27.1All 132 since 10 November 2008130 of 1322 of 13243.6
High minus median, basis points3.2Last 24 auctions14 of 249 of 243.4
High minus median, basis points3.2Since 10 November 200867 of 13263 of 1323.3
High minus median, basis points3.2All 215 since 5 May 198175 of 215138 of 2152.5

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 9 December 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20191209_3.pdf. Compiled by 500metrics, "3-year note auction of 9 December 2019 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2019-12-09.

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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