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5-year note auction of 26 March 2014 (new issue)

The 5-year note sold $35 billion at a high yield of 1.715% on , with a bid-to-cover ratio of 2.99.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.715%

Median yield 1.699%

Bid-to-cover

2.99

▲ +0.01 since 26 Feb

Sold

$35.00 billion

$35 billion offered

Indirect bidders

50.9%

Of competitive bids accepted

The high yield was the highest for a 5-year note since 25 May 2011

High yield at each 5-year note auction, %

The high yield was the highest for a 5-year note since 25 May 201136 auctions from 23 February 2011 to 26 March 2014; the latest at 1.715%.0.5%1.0%1.5%2.0%2.5%2011201220132014This auction, 1.715%The high yield was the highest for a 5-year note since 25 May 201136 auctions from 23 February 2011 to 26 March 2014; the latest at 1.715%.0.5%1.0%1.5%2.0%2012201320141.715%

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 5-year note auctions, newest first
AuctionHigh yield, %Bid-to-cover
1.7152.99
1.5302.98
1.5722.59
1.6002.42
1.3402.61
1.3002.65
1.4102.46
1.4842.45
1.0452.79
0.7102.86
0.7602.73
0.7772.85
0.8892.88
0.7692.72
0.6412.89
0.7742.73
0.6473.06
0.7082.92
0.5842.71
0.7522.61
0.7482.99
0.8873.09
1.0402.85
0.9002.89
0.8993.17
0.8802.86
0.9373.15
1.0552.90
1.0153.04
1.0292.71
1.5802.62
1.6152.59
1.8133.20
2.1242.77
2.2602.79
2.1902.69

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.992.690 of 1212 of 12
High yield1.7151.3200 of 1212 of 12
Indirect bidders' share50.945.22 of 1210 of 12
Direct bidders' share23.112.01 of 1211 of 12
Primary dealers' share25.942.212 of 120 of 12
High minus median, basis points1.63.412 of 120 of 12

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

  • Bid-to-cover ratio: Highest for a 5-year note since 26 September 2012 (15 auctions in between).
  • Primary dealers' share: Lowest of all 69 earlier 5-year note auctions we hold.
  • High minus median, basis points: Lowest for a 5-year note since 25 November 2008 (61 auctions in between).

Who bought the 5-year note?

Indirect bidders took 50.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 26 February 2014

Indirect bidders took 50.9% of the competitive bids acceptedIndirect bidders 50.9%, Direct bidders 23.1%, Primary dealers 25.9%Indirect bidders50.9%50.7%Direct bidders23.1%9.2%Primary dealers25.9%40.2%Indirect bidders took 50.9% of the competitive bids acceptedIndirect bidders 50.9%, Direct bidders 23.1%, Primary dealers 25.9%Indirect bidders50.9%50.7%Direct bidders23.1%9.2%Primary dealers25.9%40.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.950.7
Direct bidders23.19.2
Primary dealers25.940.2

About these figures

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

Treasury's published result

FieldValue
Offered as5-Year, new issue
Offering amount$35,000,000,000
Bids received$104,578,173,700
Sold$35,000,399,700
Competitive bids accepted$34,929,601,000
Non-competitive bids accepted$70,798,700
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.715
Median rate, %1.699
Low rate, %1.630
Interest rate (coupon), %1.625
Bids at the high rate filled, %89.46
Bid-to-cover ratio2.99
Indirect bidders accepted$17,793,161,000
Direct bidders accepted$8,073,300,000
Primary dealers accepted$9,063,140,000
Indirect bidders' share, % (ours)50.9
Direct bidders' share, % (ours)23.1
Primary dealers' share, % (ours)25.9
High minus median, basis points (ours)1.6
Treasury par yield curve, 5-year point, same day, %1.70
High yield minus that point, basis points (ours)1.5

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 (5-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 5-year note auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.99Last 24 auctions3 of 2420 of 242.82
Bid-to-cover ratio2.99Since 24 April 20087 of 6961 of 692.71
Bid-to-cover ratio2.99All 146 since 28 September 199410 of 146135 of 1462.52
High yield1.715Last 24 auctions0 of 2424 of 240.888
High yield1.715Since 24 April 200833 of 6936 of 691.600
High yield1.715All 242 since 24 January 1991206 of 24236 of 2424.600
Indirect bidders' share50.9Last 24 auctions2 of 2422 of 2443.0
Indirect bidders' share50.9All 69 since 24 April 20087 of 6962 of 6942.3
Direct bidders' share23.1Last 24 auctions2 of 2422 of 2411.6
Direct bidders' share23.1All 69 since 24 April 20082 of 6967 of 6910.4
Primary dealers' share25.9Last 24 auctions24 of 240 of 2443.3
Primary dealers' share25.9All 69 since 24 April 200869 of 690 of 6945.3
High minus median, basis points1.6Last 24 auctions24 of 240 of 243.5
High minus median, basis points1.6Since 24 April 200868 of 691 of 695.0
High minus median, basis points1.6All 242 since 24 January 1991193 of 24244 of 2423.0

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 26 March 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140326_2.pdf. Compiled by 500metrics, "5-year note auction of 26 March 2014 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2014-03-26.

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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