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5-year note auction of 29 December 2015 (new issue)

The 5-year note sold $35 billion at a high yield of 1.785% on , with a bid-to-cover ratio of 2.32.

Coupon
1.750%
Announced
Issued
Matures

High yield

1.785%

Median yield 1.734%

Bid-to-cover

2.32

▼ −0.20 since 24 Nov

Sold

$35.00 billion

$35 billion offered

Indirect bidders

52.5%

Of competitive bids accepted

The high yield was the highest for a 5-year note since 24 September 2014

High yield at each 5-year note auction, %

The high yield was the highest for a 5-year note since 24 September 201436 auctions from 27 March 2013 to 29 December 2015; the latest at 1.785%.0.5%1.0%1.5%2.0%201320142015This auction, 1.785%The high yield was the highest for a 5-year note since 24 September 201436 auctions from 27 March 2013 to 29 December 2015; the latest at 1.785%.0.5%1.0%1.5%2.0%201420151.785%

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
1.7852.32
1.6702.52
0.8243.01
1.4152.43
1.4672.57
0.6993.27
1.4632.34
0.6633.16
1.6252.58
1.7102.39
1.5602.46
0.6483.40
1.3802.56
1.3872.35
1.4802.54
1.2882.49
1.7392.39
1.5952.91
1.5672.36
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.322.5612 of 120 of 12
High yield1.7851.4390 of 1212 of 12
Indirect bidders' share52.556.67 of 125 of 12
Direct bidders' share11.08.73 of 129 of 12
Primary dealers' share36.537.67 of 125 of 12
High minus median, basis points5.13.41 of 1211 of 12

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

  • Bid-to-cover ratio: Lowest for a 5-year note since 29 July 2009 (78 auctions in between).

Who bought the 5-year note?

Indirect bidders took 52.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 24 November 2015

Indirect bidders took 52.5% of the competitive bids acceptedIndirect bidders 52.5%, Direct bidders 11.0%, Primary dealers 36.5%Indirect bidders52.5%56.7%Direct bidders11.0%10.1%Primary dealers36.5%33.2%Indirect bidders took 52.5% of the competitive bids acceptedIndirect bidders 52.5%, Direct bidders 11.0%, Primary dealers 36.5%Indirect bidders52.5%56.7%Direct bidders11.0%10.1%Primary dealers36.5%33.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders52.556.7
Direct bidders11.010.1
Primary dealers36.533.2

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$81,062,901,600
Sold$35,000,019,100
Competitive bids accepted$34,954,117,500
Non-competitive bids accepted$45,901,600
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.785
Median rate, %1.734
Low rate, %1.600
Interest rate (coupon), %1.750
Bids at the high rate filled, %27.37
Bid-to-cover ratio2.32
Indirect bidders accepted$18,356,550,000
Direct bidders accepted$3,831,470,000
Primary dealers accepted$12,766,097,500
Indirect bidders' share, % (ours)52.5
Direct bidders' share, % (ours)11.0
Primary dealers' share, % (ours)36.5
High minus median, basis points (ours)5.1
Treasury par yield curve, 5-year point, same day, %1.81
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 (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 ratio2.32Last 24 auctions24 of 240 of 242.56
Bid-to-cover ratio2.32Since 24 April 200882 of 9411 of 942.67
Bid-to-cover ratio2.32All 171 since 28 September 1994118 of 17151 of 1712.56
High yield1.785Last 24 auctions1 of 2423 of 241.536
High yield1.785Since 24 April 200834 of 9460 of 941.576
High yield1.785All 267 since 24 January 1991207 of 26760 of 2674.248
Indirect bidders' share52.5Last 24 auctions13 of 2411 of 2454.2
Indirect bidders' share52.5All 94 since 24 April 200820 of 9474 of 9444.7
Direct bidders' share11.0Last 24 auctions5 of 2419 of 249.7
Direct bidders' share11.0All 94 since 24 April 200833 of 9461 of 9410.1
Primary dealers' share36.5Last 24 auctions12 of 2412 of 2436.9
Primary dealers' share36.5All 94 since 24 April 200878 of 9416 of 9443.0
High minus median, basis points5.1Last 24 auctions1 of 2423 of 243.5
High minus median, basis points5.1Since 24 April 200832 of 9462 of 944.4
High minus median, basis points5.1All 267 since 24 January 199138 of 267229 of 2673.0

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 29 December 2015. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2015/R_20151229_2.pdf. Compiled by 500metrics, "5-year note auction of 29 December 2015 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2015-12-29.

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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