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30-year TIPS auction of 23 October 2014 (reopening)

The 30-year TIPS sold $7 billion at a high real yield of 0.985% on , with a bid-to-cover ratio of 2.29.

Coupon
1.375%
Announced
Issued
Matures

Real yield

0.985%

Median real yield 0.929%

Bid-to-cover

2.29

▼ −0.47 since 19 Jun

Sold

$7.00 billion

$7 billion offered

Indirect bidders

64.5%

Of competitive bids accepted

Real yield at the last 20 30-year TIPS auctions

Real yield at each 30-year TIPS auction, %

Real yield at the last 20 30-year TIPS auctions20 auctions from 8 April 1998 to 23 October 2014; the latest at 0.985%.0.0%1.0%2.0%3.0%4.0%5.0%199819992000200120102011201220132014This auction, 0.985%Real yield at the last 20 30-year TIPS auctions20 auctions from 8 April 1998 to 23 October 2014; the latest at 0.985%.0.0%1.0%2.0%3.0%4.0%5.0%199920002001201020112012201320140.985%

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

The 20 auctions as a table
Real yield and bid-to-cover of the last 20 30-year TIPS auctions, newest first
AuctionReal yield, %Bid-to-cover
0.9852.29
1.1162.76
1.4952.34
1.3302.76
1.4202.48
0.6392.47
0.4792.82
0.5202.64
0.7702.46
0.9993.06
1.7443.02
2.1902.54
1.7682.78
2.2292.45
3.4652.23
3.9531.98
4.138–
3.899–
3.680–
3.740–

Against its own history

Against the previous 12 auctions of the 30-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.292.7012 of 120 of 12
High real yield0.9851.2238 of 124 of 12
Indirect bidders' share64.547.10 of 1212 of 12
Direct bidders' share4.513.810 of 122 of 12
Primary dealers' share31.037.611 of 121 of 12
High minus median, basis points5.66.08 of 124 of 12

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

  • Bid-to-cover ratio: Lowest for a 30-year TIPS since 10 October 2001 (13 auctions in between).
  • Indirect bidders' share: Highest of all 13 earlier 30-year TIPS auctions we hold.

Who bought the 30-year TIPS?

Indirect bidders took 64.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 30-year TIPS auction, 19 June 2014

Indirect bidders took 64.5% of the competitive bids acceptedIndirect bidders 64.5%, Direct bidders 4.5%, Primary dealers 31.0%Indirect bidders64.5%59.7%Direct bidders4.5%8.2%Primary dealers31.0%32.1%Indirect bidders took 64.5% of the competitive bids acceptedIndirect bidders 64.5%, Direct bidders 4.5%, Primary dealers 31.0%Indirect bidders64.5%59.7%Direct bidders4.5%8.2%Primary dealers31.0%32.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders64.559.7
Direct bidders4.58.2
Primary dealers31.032.1

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as29-Year 4-Month, reopening
Offering amount$7,000,000,000
Bids received$16,022,554,300
Sold$7,000,004,300
Competitive bids accepted$6,982,090,000
Non-competitive bids accepted$17,914,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
Real yield, %0.985
Median rate, %0.929
Low rate, %0.849
Interest rate (coupon), %1.375
Bids at the high rate filled, %92.20
Bid-to-cover ratio2.29
Indirect bidders accepted$4,504,090,000
Direct bidders accepted$315,000,000
Primary dealers accepted$2,163,000,000
Indirect bidders' share, % (ours)64.5
Direct bidders' share, % (ours)4.5
Primary dealers' share, % (ours)31.0
High minus median, basis points (ours)5.6
Treasury real par yield curve, 30-year point, same day, %0.98
High yield minus that point, basis points (ours)0.5

Treasury's own files: announcement (PDF) · results (PDF)

How to read this result

The high real 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 real par yield curve comparison sets the high yield against Treasury's own real par yield curve on the auction day, at the point nearest this security's maturity (30-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 30-year TIPS auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.29Since 22 February 201013 of 130 of 132.64
Bid-to-cover ratio2.29All 15 since 11 October 200013 of 152 of 152.54
High real yield0.985Since 22 February 20109 of 134 of 131.330
High real yield0.985All 19 since 8 April 199815 of 194 of 191.744
Indirect bidders' share64.5All 13 since 22 February 20100 of 1313 of 1345.0
Direct bidders' share4.5All 13 since 22 February 201011 of 132 of 1313.6
Primary dealers' share31.0All 13 since 22 February 201012 of 131 of 1337.7
High minus median, basis points5.6Since 22 February 20109 of 134 of 136.0
High minus median, basis points5.6All 19 since 8 April 199811 of 198 of 196.0

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 23 October 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20141023_1.pdf. Compiled by 500metrics, "30-year TIPS auction of 23 October 2014 (reopening)", https://500metrics.com/treasury/auctions/30-year-tips/2014-10-23.

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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