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3-year note auction of 9 May 2023 (new issue)

The 3-year note sold $50.898 billion at a high yield of 3.695% on , with a bid-to-cover ratio of 2.93.

Coupon
3.625%
Announced
Issued
Matures

High yield

3.695%

Median yield 3.655%

Bid-to-cover

2.93

▲ +0.34 since 11 Apr

Sold

$50.90 billion

$40 billion offered

Indirect bidders

73.3%

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 8 June 2020 to 9 May 2023; the latest at 3.695%.0.0%2.0%4.0%6.0%2020202120222023This auction, 3.695%High yield at the last 36 3-year note auctions36 auctions from 8 June 2020 to 9 May 2023; the latest at 3.695%.0.0%2.0%4.0%6.0%2021202220233.695%

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
3.6952.93
3.8102.59
4.6352.73
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

Against its own history

Against the previous 12 auctions of the 3-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.932.560 of 1212 of 12
High yield3.6953.8947 of 125 of 12
Indirect bidders' share73.361.50 of 1212 of 12
Direct bidders' share13.720.011 of 121 of 12
Primary dealers' share13.019.912 of 120 of 12
High minus median, basis points4.06.212 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 12 March 2018 (60 auctions in between).
  • Indirect bidders' share: Highest of all 173 earlier 3-year note auctions we hold.
  • Primary dealers' share: Lowest of all 173 earlier 3-year note auctions we hold.
  • High minus median, basis points: Lowest for a 3-year note since 12 October 2021 (18 auctions in between).

Who bought the 3-year note?

Indirect bidders took 73.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 3-year note auction, 11 April 2023

Indirect bidders took 73.3% of the competitive bids acceptedIndirect bidders 73.3%, Direct bidders 13.7%, Primary dealers 13.0%Indirect bidders73.3%61.3%Direct bidders13.7%21.0%Primary dealers13.0%17.7%Indirect bidders took 73.3% of the competitive bids acceptedIndirect bidders 73.3%, Direct bidders 13.7%, Primary dealers 13.0%Indirect bidders73.3%61.3%Direct bidders13.7%21.0%Primary dealers13.0%17.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders73.361.3
Direct bidders13.721.0
Primary dealers13.017.7

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$40,000,000,000
Bids received$128,065,108,800
Sold$50,897,713,300
Competitive bids accepted$39,890,554,500
Non-competitive bids accepted$109,460,000
Federal Reserve (SOMA) add-on$10,897,698,800
Foreign and international (FIMA) non-competitive$0
High yield, %3.695
Median rate, %3.655
Low rate, %3.500
Interest rate (coupon), %3.625
Bids at the high rate filled, %67.23
Bid-to-cover ratio2.93
Indirect bidders accepted$29,259,662,500
Direct bidders accepted$5,450,000,000
Primary dealers accepted$5,180,892,000
Indirect bidders' share, % (ours)73.3
Direct bidders' share, % (ours)13.7
Primary dealers' share, % (ours)13.0
High minus median, basis points (ours)4.0
Treasury par yield curve, 3-year point, same day, %3.67
High yield minus that point, basis points (ours)2.5

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 ratio2.93Last 24 auctions0 of 2424 of 242.47
Bid-to-cover ratio2.93Since 10 November 200882 of 17390 of 1732.87
Bid-to-cover ratio2.93All 189 since 6 May 200383 of 189105 of 1892.82
High yield3.695Last 24 auctions7 of 2417 of 242.774
High yield3.695Since 10 November 20087 of 173166 of 1731.050
High yield3.695All 256 since 5 May 198183 of 256173 of 2561.572
Indirect bidders' share73.3Last 24 auctions0 of 2424 of 2457.1
Indirect bidders' share73.3All 173 since 10 November 20080 of 173173 of 17347.4
Direct bidders' share13.7Last 24 auctions22 of 242 of 2418.4
Direct bidders' share13.7All 173 since 10 November 200880 of 17393 of 17313.0
Primary dealers' share13.0Last 24 auctions24 of 240 of 2424.0
Primary dealers' share13.0All 173 since 10 November 2008173 of 1730 of 17340.5
High minus median, basis points4.0Last 24 auctions21 of 242 of 245.5
High minus median, basis points4.0Since 10 November 200864 of 173104 of 1733.4
High minus median, basis points4.0All 256 since 5 May 198168 of 256180 of 2562.9

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 9 May 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230509_1.pdf. Compiled by 500metrics, "3-year note auction of 9 May 2023 (new issue)", https://500metrics.com/treasury/auctions/3-year-note/2023-05-09.

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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