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5-year note auction of 24 September 2014 (new issue)

The 5-year note sold $35 billion at a high yield of 1.800% on , with a bid-to-cover ratio of 2.56.

Coupon
1.750%
Announced
Issued
Matures

High yield

1.800%

Median yield 1.763%

Bid-to-cover

2.56

▼ −0.25 since 27 Aug

Sold

$35.00 billion

$35 billion offered

Indirect bidders

50.3%

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 24 August 2011 to 24 September 2014; the latest at 1.800%.0.5%1.0%1.5%2.0%2011201220132014This auction, 1.800%The high yield was the highest for a 5-year note since 25 May 201136 auctions from 24 August 2011 to 24 September 2014; the latest at 1.800%.0.5%1.0%1.5%2.0%2012201320141.800%

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
1.8002.56
1.6462.81
1.7202.81
1.6702.74
1.5132.73
1.7322.79
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.562.7410 of 122 of 12
High yield1.8001.5860 of 1212 of 12
Indirect bidders' share50.350.26 of 126 of 12
Direct bidders' share8.810.811 of 121 of 12
Primary dealers' share41.038.63 of 129 of 12
High minus median, basis points3.73.32 of 129 of 12

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

Who bought the 5-year note?

Indirect bidders took 50.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 27 August 2014

Indirect bidders took 50.3% of the competitive bids acceptedIndirect bidders 50.3%, Direct bidders 8.8%, Primary dealers 41.0%Indirect bidders50.3%52.7%Direct bidders8.8%10.8%Primary dealers41.0%36.4%Indirect bidders took 50.3% of the competitive bids acceptedIndirect bidders 50.3%, Direct bidders 8.8%, Primary dealers 41.0%Indirect bidders50.3%52.7%Direct bidders8.8%10.8%Primary dealers41.0%36.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.352.7
Direct bidders8.810.8
Primary dealers41.036.4

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$89,557,597,100
Sold$35,000,047,100
Competitive bids accepted$34,899,950,000
Non-competitive bids accepted$50,097,100
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$50,000,000
High yield, %1.800
Median rate, %1.763
Low rate, %1.690
Interest rate (coupon), %1.750
Bids at the high rate filled, %65.80
Bid-to-cover ratio2.56
Indirect bidders accepted$17,538,400,000
Direct bidders accepted$3,066,350,000
Primary dealers accepted$14,295,200,000
Indirect bidders' share, % (ours)50.3
Direct bidders' share, % (ours)8.8
Primary dealers' share, % (ours)41.0
High minus median, basis points (ours)3.7
Treasury par yield curve, 5-year point, same day, %1.82
High yield minus that point, basis points (ours)-2.0

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 ratio2.56Last 24 auctions21 of 243 of 242.76
Bid-to-cover ratio2.56Since 24 April 200854 of 7521 of 752.72
Bid-to-cover ratio2.56All 152 since 28 September 199477 of 15275 of 1522.58
High yield1.800Last 24 auctions0 of 2424 of 241.320
High yield1.800Since 24 April 200832 of 7543 of 751.646
High yield1.800All 248 since 24 January 1991205 of 24843 of 2484.530
Indirect bidders' share50.3Last 24 auctions7 of 2417 of 2445.1
Indirect bidders' share50.3All 75 since 24 April 200814 of 7561 of 7542.6
Direct bidders' share8.8Last 24 auctions21 of 243 of 2412.0
Direct bidders' share8.8All 75 since 24 April 200848 of 7527 of 7510.7
Primary dealers' share41.0Last 24 auctions11 of 2413 of 2439.7
Primary dealers' share41.0All 75 since 24 April 200853 of 7522 of 7544.4
High minus median, basis points3.7Last 24 auctions5 of 2418 of 243.3
High minus median, basis points3.7Since 24 April 200850 of 7523 of 754.8
High minus median, basis points3.7All 248 since 24 January 199180 of 248165 of 2483.0

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 24 September 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140924_2.pdf. Compiled by 500metrics, "5-year note auction of 24 September 2014 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2014-09-24.

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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