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5-year note auction of 26 October 2016 (new issue)

The 5-year note sold $36.055 billion at a high yield of 1.303% on , with a bid-to-cover ratio of 2.49.

Coupon
1.250%
Announced
Issued
Matures

High yield

1.303%

Median yield 1.260%

Bid-to-cover

2.49

▲ +0.10 since 27 Sep

Sold

$36.06 billion

$34 billion offered

Indirect bidders

59.7%

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 23 April 2014 to 26 October 2016; the latest at 1.303%.0.5%1.0%1.5%2.0%201420152016This auction, 1.303%High yield at the last 36 5-year note auctions36 auctions from 23 April 2014 to 26 October 2016; the latest at 1.303%.0.5%1.0%1.5%2.0%201520161.303%

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
1.3032.49
1.1292.39
1.1252.54
1.1802.27
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.492.424 of 128 of 12
High yield1.3031.2766 of 126 of 12
Indirect bidders' share59.756.95 of 127 of 12
Direct bidders' share4.97.99 of 123 of 12
Primary dealers' share35.433.85 of 127 of 12
High minus median, basis points4.35.010 of 122 of 12

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

Who bought the 5-year note?

Indirect bidders took 59.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 27 September 2016

Indirect bidders took 59.7% of the competitive bids acceptedIndirect bidders 59.7%, Direct bidders 4.9%, Primary dealers 35.4%Indirect bidders59.7%61.4%Direct bidders4.9%4.4%Primary dealers35.4%34.1%Indirect bidders took 59.7% of the competitive bids acceptedIndirect bidders 59.7%, Direct bidders 4.9%, Primary dealers 35.4%Indirect bidders59.7%61.4%Direct bidders4.9%4.4%Primary dealers35.4%34.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders59.761.4
Direct bidders4.94.4
Primary dealers35.434.1

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$86,564,073,000
Sold$36,055,478,500
Competitive bids accepted$33,966,348,500
Non-competitive bids accepted$33,703,300
Federal Reserve (SOMA) add-on$2,055,426,700
Foreign and international (FIMA) non-competitive$0
High yield, %1.303
Median rate, %1.260
Low rate, %1.195
Interest rate (coupon), %1.250
Bids at the high rate filled, %6.51
Bid-to-cover ratio2.49
Indirect bidders accepted$20,294,688,500
Direct bidders accepted$1,650,000,000
Primary dealers accepted$12,021,660,000
Indirect bidders' share, % (ours)59.7
Direct bidders' share, % (ours)4.9
Primary dealers' share, % (ours)35.4
High minus median, basis points (ours)4.3
Treasury par yield curve, 5-year point, same day, %1.30
High yield minus that point, basis points (ours)0.3

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 ratio2.49Last 24 auctions11 of 2413 of 242.45
Bid-to-cover ratio2.49Since 24 April 200870 of 10534 of 1052.61
Bid-to-cover ratio2.49All 182 since 28 September 199496 of 18285 of 1822.54
High yield1.303Last 24 auctions14 of 2410 of 241.384
High yield1.303Since 24 April 200870 of 10535 of 1051.530
High yield1.303All 278 since 24 January 1991243 of 27835 of 2783.982
Indirect bidders' share59.7Last 24 auctions8 of 2416 of 2456.6
Indirect bidders' share59.7All 105 since 24 April 200813 of 10592 of 10545.9
Direct bidders' share4.9Last 24 auctions19 of 245 of 247.3
Direct bidders' share4.9All 105 since 24 April 200882 of 10523 of 1059.9
Primary dealers' share35.4Last 24 auctions13 of 2411 of 2436.9
Primary dealers' share35.4All 105 since 24 April 200886 of 10519 of 10542.2
High minus median, basis points4.3Last 24 auctions13 of 2411 of 244.5
High minus median, basis points4.3Since 24 April 200856 of 10548 of 1054.5
High minus median, basis points4.3All 278 since 24 January 199173 of 278203 of 2783.0

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 October 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20161026_2.pdf. Compiled by 500metrics, "5-year note auction of 26 October 2016 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2016-10-26.

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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