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3-year note auction of 8 September 2020 (new issue)

The 3-year note sold $52.056 billion at a high yield of 0.170% on , with a bid-to-cover ratio of 2.28.

Coupon
0.125%
Announced
Issued
Matures

High yield

0.170%

Median yield 0.144%

Bid-to-cover

2.28

▼ −0.16 since 11 Aug

Sold

$52.06 billion

$50 billion offered

Indirect bidders

50.7%

Of competitive bids accepted

The high yield was the lowest for a 3-year note of all 224 earlier auctions we hold

High yield at each 3-year note auction, %

The high yield was the lowest for a 3-year note of all 224 earlier auctions we hold36 auctions from 11 September 2017 to 8 September 2020; the latest at 0.170%.0.0%1.0%2.0%3.0%2017201820192020This auction, 0.170%The high yield was the lowest for a 3-year note of all 224 earlier auctions we hold36 auctions from 11 September 2017 to 8 September 2020; the latest at 0.170%.0.0%1.0%2.0%3.0%201920200.170%

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
0.1702.28
0.1792.44
0.1902.44
0.2802.55
0.2302.54
0.3482.27
0.5632.20
1.3942.56
1.5672.45
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.282.4410 of 122 of 12
High yield0.1700.97812 of 120 of 12
Indirect bidders' share50.750.76 of 126 of 12
Direct bidders' share13.015.59 of 123 of 12
Primary dealers' share36.334.95 of 127 of 12
High minus median, basis points2.63.212 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 11 June 2019 (13 auctions in between).

Who bought the 3-year note?

Indirect bidders took 50.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 11 August 2020

Indirect bidders took 50.7% of the competitive bids acceptedIndirect bidders 50.7%, Direct bidders 13.0%, Primary dealers 36.3%Indirect bidders50.7%57.0%Direct bidders13.0%12.3%Primary dealers36.3%30.7%Indirect bidders took 50.7% of the competitive bids acceptedIndirect bidders 50.7%, Direct bidders 13.0%, Primary dealers 36.3%Indirect bidders50.7%57.0%Direct bidders13.0%12.3%Primary dealers36.3%30.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.757.0
Direct bidders13.012.3
Primary dealers36.330.7

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$50,000,000,000
Bids received$116,266,953,100
Sold$52,055,619,500
Competitive bids accepted$49,870,766,400
Non-competitive bids accepted$29,297,500
Federal Reserve (SOMA) add-on$2,055,555,600
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %0.170
Median rate, %0.144
Low rate, %0.065
Interest rate (coupon), %0.125
Bids at the high rate filled, %87.34
Bid-to-cover ratio2.28
Indirect bidders accepted$25,306,123,000
Direct bidders accepted$6,466,223,400
Primary dealers accepted$18,098,420,000
Indirect bidders' share, % (ours)50.7
Direct bidders' share, % (ours)13.0
Primary dealers' share, % (ours)36.3
High minus median, basis points (ours)2.6
Treasury par yield curve, 3-year point, same day, %0.17
High yield minus that point, basis points (ours)0.0

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 ratio2.28Last 24 auctions22 of 242 of 242.52
Bid-to-cover ratio2.28Since 10 November 2008136 of 1415 of 1413.02
Bid-to-cover ratio2.28All 157 since 6 May 2003142 of 15715 of 1572.97
High yield0.170Last 24 auctions24 of 240 of 241.744
High yield0.170Since 10 November 2008141 of 1410 of 1411.050
High yield0.170All 224 since 5 May 1981224 of 2240 of 2241.573
Indirect bidders' share50.7Last 24 auctions7 of 2417 of 2448.0
Indirect bidders' share50.7All 141 since 10 November 200837 of 141104 of 14143.9
Direct bidders' share13.0Last 24 auctions15 of 249 of 2413.9
Direct bidders' share13.0All 141 since 10 November 200857 of 14184 of 14111.5
Primary dealers' share36.3Last 24 auctions14 of 2410 of 2437.3
Primary dealers' share36.3All 141 since 10 November 2008116 of 14125 of 14143.0
High minus median, basis points2.6Last 24 auctions18 of 244 of 243.2
High minus median, basis points2.6Since 10 November 200892 of 14143 of 1413.2
High minus median, basis points2.6All 224 since 5 May 1981110 of 224108 of 2242.6

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 8 September 2020. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20200908_5.pdf. Compiled by 500metrics, "3-year note auction of 8 September 2020 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2020-09-08.

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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