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5-year note auction of 21 June 2016 (new issue)

The 5-year note sold $38.96 billion at a high yield of 1.218% on , with a bid-to-cover ratio of 2.29.

Coupon
1.125%
Announced
Issued
Matures

High yield

1.218%

Median yield 1.165%

Bid-to-cover

2.29

▼ −0.31 since 25 May

Sold

$38.96 billion

$34 billion offered

Indirect bidders

57.2%

Of competitive bids accepted

High yield at the last 36 5-year note auctions

High yield at each 5-year note auction, %

High yield at the last 36 5-year note auctions36 auctions from 18 December 2013 to 21 June 2016; the latest at 1.218%.0.5%1.0%1.5%2.0%201420152016This auction, 1.218%High yield at the last 36 5-year note auctions36 auctions from 18 December 2013 to 21 June 2016; the latest at 1.218%.0.5%1.0%1.5%2.0%201520161.218%

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
1.2182.29
1.3952.60
1.4102.41
1.3352.38
1.1692.44
0.7522.91
1.4962.44
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.292.4812 of 120 of 12
High yield1.2181.4028 of 124 of 12
Indirect bidders' share57.256.25 of 127 of 12
Direct bidders' share3.710.112 of 120 of 12
Primary dealers' share39.135.02 of 1210 of 12
High minus median, basis points5.35.03 of 129 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 (85 auctions in between).
  • Direct bidders' share: Lowest for a 5-year note since 26 June 2013 (38 auctions in between).

Who bought the 5-year note?

Indirect bidders took 57.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 25 May 2016

Indirect bidders took 57.2% of the competitive bids acceptedIndirect bidders 57.2%, Direct bidders 3.7%, Primary dealers 39.1%Indirect bidders57.2%66.6%Direct bidders3.7%11.6%Primary dealers39.1%21.8%Indirect bidders took 57.2% of the competitive bids acceptedIndirect bidders 57.2%, Direct bidders 3.7%, Primary dealers 39.1%Indirect bidders57.2%66.6%Direct bidders3.7%11.6%Primary dealers39.1%21.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders57.266.6
Direct bidders3.711.6
Primary dealers39.121.8

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$34,000,000,000
Bids received$82,847,753,300
Sold$38,959,981,900
Competitive bids accepted$33,968,028,600
Non-competitive bids accepted$32,013,100
Federal Reserve (SOMA) add-on$4,959,940,200
Foreign and international (FIMA) non-competitive$0
High yield, %1.218
Median rate, %1.165
Low rate, %1.100
Interest rate (coupon), %1.125
Bids at the high rate filled, %68.14
Bid-to-cover ratio2.29
Indirect bidders accepted$19,433,800,000
Direct bidders accepted$1,266,000,000
Primary dealers accepted$13,268,228,600
Indirect bidders' share, % (ours)57.2
Direct bidders' share, % (ours)3.7
Primary dealers' share, % (ours)39.1
High minus median, basis points (ours)5.3
Treasury par yield curve, 5-year point, same day, %1.22
High yield minus that point, basis points (ours)-0.2

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 ratio2.29Last 24 auctions24 of 240 of 242.50
Bid-to-cover ratio2.29Since 24 April 200890 of 10111 of 1012.63
Bid-to-cover ratio2.29All 178 since 28 September 1994128 of 17848 of 1782.54
High yield1.218Last 24 auctions18 of 246 of 241.412
High yield1.218Since 24 April 200873 of 10128 of 1011.560
High yield1.218All 274 since 24 January 1991246 of 27428 of 2744.028
Indirect bidders' share57.2Last 24 auctions12 of 2412 of 2457.6
Indirect bidders' share57.2All 101 since 24 April 200814 of 10187 of 10145.3
Direct bidders' share3.7Last 24 auctions24 of 240 of 249.1
Direct bidders' share3.7All 101 since 24 April 200883 of 10118 of 10110.0
Primary dealers' share39.1Last 24 auctions6 of 2418 of 2433.7
Primary dealers' share39.1All 101 since 24 April 200870 of 10131 of 10142.4
High minus median, basis points5.3Last 24 auctions3 of 2421 of 244.2
High minus median, basis points5.3Since 24 April 200832 of 10168 of 1014.5
High minus median, basis points5.3All 274 since 24 January 199137 of 274235 of 2743.0

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 21 June 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160621_3.pdf. Compiled by 500metrics, "5-year note auction of 21 June 2016 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2016-06-21.

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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