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3-year note auction of 7 February 2023 (new issue)

The 3-year note sold $55.632 billion at a high yield of 4.073% on , with a bid-to-cover ratio of 2.33.

Coupon
4.000%
Announced
Issued
Matures

High yield

4.073%

Median yield 3.989%

Bid-to-cover

2.33

▼ −0.51 since 10 Jan

Sold

$55.63 billion

$40 billion offered

Indirect bidders

59.1%

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 10 March 2020 to 7 February 2023; the latest at 4.073%.0.0%2.0%4.0%6.0%2020202120222023This auction, 4.073%High yield at the last 36 3-year note auctions36 auctions from 10 March 2020 to 7 February 2023; the latest at 4.073%.0.0%2.0%4.0%6.0%2021202220234.073%

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
4.0732.33
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.332.5012 of 120 of 12
High yield4.0733.1483 of 129 of 12
Indirect bidders' share59.161.07 of 125 of 12
Direct bidders' share21.118.32 of 1210 of 12
Primary dealers' share19.920.59 of 123 of 12
High minus median, basis points8.46.20 of 1212 of 12

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

  • Bid-to-cover ratio: Lowest for a 3-year note since 8 November 2021 (14 auctions in between).
  • High minus median, basis points: Highest for a 3-year note since 7 July 2009 (161 auctions in between).

Who bought the 3-year note?

Indirect bidders took 59.1% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 10 January 2023

Indirect bidders took 59.1% of the competitive bids acceptedIndirect bidders 59.1%, Direct bidders 21.1%, Primary dealers 19.9%Indirect bidders59.1%69.5%Direct bidders21.1%13.2%Primary dealers19.9%17.3%Indirect bidders took 59.1% of the competitive bids acceptedIndirect bidders 59.1%, Direct bidders 21.1%, Primary dealers 19.9%Indirect bidders59.1%69.5%Direct bidders21.1%13.2%Primary dealers19.9%17.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders59.169.5
Direct bidders21.113.2
Primary dealers19.917.3

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$40,000,000,000
Bids received$108,942,024,500
Sold$55,631,649,500
Competitive bids accepted$39,717,991,000
Non-competitive bids accepted$182,132,300
Federal Reserve (SOMA) add-on$15,631,526,200
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %4.073
Median rate, %3.989
Low rate, %3.960
Interest rate (coupon), %4.000
Bids at the high rate filled, %92.21
Bid-to-cover ratio2.33
Indirect bidders accepted$23,454,941,000
Direct bidders accepted$8,365,000,000
Primary dealers accepted$7,898,050,000
Indirect bidders' share, % (ours)59.1
Direct bidders' share, % (ours)21.1
Primary dealers' share, % (ours)19.9
High minus median, basis points (ours)8.4
Treasury par yield curve, 3-year point, same day, %4.11
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 ratio2.33Last 24 auctions22 of 241 of 242.46
Bid-to-cover ratio2.33Since 10 November 2008161 of 1708 of 1702.90
Bid-to-cover ratio2.33All 186 since 6 May 2003165 of 18620 of 1862.82
High yield4.073Last 24 auctions3 of 2421 of 241.414
High yield4.073Since 10 November 20083 of 170167 of 1701.042
High yield4.073All 253 since 5 May 198178 of 253175 of 2531.567
Indirect bidders' share59.1Last 24 auctions8 of 2416 of 2454.8
Indirect bidders' share59.1All 170 since 10 November 200815 of 170155 of 17046.8
Direct bidders' share21.1Last 24 auctions2 of 2422 of 2418.2
Direct bidders' share21.1All 170 since 10 November 200813 of 170157 of 17012.7
Primary dealers' share19.9Last 24 auctions21 of 243 of 2425.5
Primary dealers' share19.9All 170 since 10 November 2008167 of 1703 of 17040.6
High minus median, basis points8.4Last 24 auctions0 of 2424 of 245.0
High minus median, basis points8.4Since 10 November 20082 of 170168 of 1703.4
High minus median, basis points8.4All 253 since 5 May 19812 of 253251 of 2532.9

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 7 February 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230207_1.pdf. Compiled by 500metrics, "3-year note auction of 7 February 2023 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2023-02-07.

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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