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3-year note auction of 10 January 2023 (new issue)

The 3-year note sold $40 billion at a high yield of 3.977% on , with a bid-to-cover ratio of 2.84.

Coupon
3.875%
Announced
Issued
Matures

High yield

3.977%

Median yield 3.930%

Bid-to-cover

2.84

▲ +0.29 since 12 Dec

Sold

$40.00 billion

$40 billion offered

Indirect bidders

69.5%

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 11 February 2020 to 10 January 2023; the latest at 3.977%.0.0%2.0%4.0%6.0%2020202120222023This auction, 3.977%High yield at the last 36 3-year note auctions36 auctions from 11 February 2020 to 10 January 2023; the latest at 3.977%.0.0%2.0%4.0%6.0%2021202220233.977%

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
3.9772.84
4.0932.55
4.6052.57
4.3182.57
3.5642.49
3.2022.50
3.0932.43
2.9272.45
2.8092.59
2.7382.48
1.7752.39
1.5922.45
1.2372.47
1.0002.43
0.7502.33
0.6352.36
0.4472.45
0.4652.54
0.4262.41
0.3252.47
0.3292.42
0.3762.32
0.3552.69
0.1962.39
0.2342.52
0.2112.28
0.2502.40
0.1932.44
0.1702.28
0.1792.44
0.1902.44
0.2802.55
0.2302.54
0.3482.27
0.5632.20
1.3942.56

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.842.480 of 1212 of 12
High yield3.9773.0103 of 129 of 12
Indirect bidders' share69.561.00 of 1212 of 12
Direct bidders' share13.218.311 of 121 of 12
Primary dealers' share17.321.812 of 120 of 12
High minus median, basis points4.76.211 of 120 of 12

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

  • Bid-to-cover ratio: Highest for a 3-year note since 10 April 2018 (55 auctions in between).
  • Indirect bidders' share: Highest of all 169 earlier 3-year note auctions we hold.
  • Primary dealers' share: Lowest of all 169 earlier 3-year note auctions we hold.

Who bought the 3-year note?

Indirect bidders took 69.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 12 December 2022

Indirect bidders took 69.5% of the competitive bids acceptedIndirect bidders 69.5%, Direct bidders 13.2%, Primary dealers 17.3%Indirect bidders69.5%61.7%Direct bidders13.2%20.4%Primary dealers17.3%17.9%Indirect bidders took 69.5% of the competitive bids acceptedIndirect bidders 69.5%, Direct bidders 13.2%, Primary dealers 17.3%Indirect bidders69.5%61.7%Direct bidders13.2%20.4%Primary dealers17.3%17.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders69.561.7
Direct bidders13.220.4
Primary dealers17.317.9

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$40,000,000,000
Bids received$113,578,584,200
Sold$40,000,009,200
Competitive bids accepted$39,795,840,000
Non-competitive bids accepted$204,169,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %3.977
Median rate, %3.930
Low rate, %3.860
Interest rate (coupon), %3.875
Bids at the high rate filled, %93.81
Bid-to-cover ratio2.84
Indirect bidders accepted$27,674,840,000
Direct bidders accepted$5,244,000,000
Primary dealers accepted$6,877,000,000
Indirect bidders' share, % (ours)69.5
Direct bidders' share, % (ours)13.2
Primary dealers' share, % (ours)17.3
High minus median, basis points (ours)4.7
Treasury par yield curve, 3-year point, same day, %3.94
High yield minus that point, basis points (ours)3.7

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 ratio2.84Last 24 auctions0 of 2424 of 242.46
Bid-to-cover ratio2.84Since 10 November 200888 of 16981 of 1692.91
Bid-to-cover ratio2.84All 185 since 6 May 200389 of 18596 of 1852.82
High yield3.977Last 24 auctions3 of 2421 of 241.118
High yield3.977Since 10 November 20083 of 169166 of 1691.039
High yield3.977All 252 since 5 May 198178 of 252174 of 2521.564
Indirect bidders' share69.5Last 24 auctions0 of 2424 of 2454.4
Indirect bidders' share69.5All 169 since 10 November 20080 of 169169 of 16946.7
Direct bidders' share13.2Last 24 auctions23 of 241 of 2418.2
Direct bidders' share13.2All 169 since 10 November 200880 of 16989 of 16912.6
Primary dealers' share17.3Last 24 auctions24 of 240 of 2426.2
Primary dealers' share17.3All 169 since 10 November 2008169 of 1690 of 16940.7
High minus median, basis points4.7Last 24 auctions12 of 2410 of 245.0
High minus median, basis points4.7Since 10 November 200837 of 169129 of 1693.4
High minus median, basis points4.7All 252 since 5 May 198140 of 252209 of 2522.9

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 January 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230110_1.pdf. Compiled by 500metrics, "3-year note auction of 10 January 2023 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2023-01-10.

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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