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5-year note auction of 28 August 2017 (new issue)

The 5-year note sold $35.066 billion at a high yield of 1.742% on , with a bid-to-cover ratio of 2.58.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.742%

Median yield 1.700%

Bid-to-cover

2.58

▬ Unchanged since 26 Jul

Sold

$35.07 billion

$34 billion offered

Indirect bidders

69.1%

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 25 February 2015 to 28 August 2017; the latest at 1.742%.0.5%1.0%1.5%2.0%2.5%201520162017This auction, 1.742%High yield at the last 36 5-year note auctions36 auctions from 25 February 2015 to 28 August 2017; the latest at 1.742%.0.5%1.0%1.5%2.0%2.5%201620171.742%

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
1.7422.58
1.8842.58
1.8282.33
1.8312.67
1.8752.34
1.9502.37
1.9372.29
1.9882.38
2.0572.72
1.7602.44
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.582.422 of 129 of 12
High yield1.7421.8539 of 123 of 12
Indirect bidders' share69.164.22 of 1210 of 12
Direct bidders' share13.55.10 of 1212 of 12
Primary dealers' share17.529.212 of 120 of 12
High minus median, basis points4.24.89 of 123 of 12

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

  • Direct bidders' share: Highest for a 5-year note since 26 May 2015 (31 auctions in between).
  • Primary dealers' share: Lowest of all 115 earlier 5-year note auctions we hold.

Who bought the 5-year note?

Indirect bidders took 69.1% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 26 July 2017

Indirect bidders took 69.1% of the competitive bids acceptedIndirect bidders 69.1%, Direct bidders 13.5%, Primary dealers 17.5%Indirect bidders69.1%69.8%Direct bidders13.5%6.2%Primary dealers17.5%24.1%Indirect bidders took 69.1% of the competitive bids acceptedIndirect bidders 69.1%, Direct bidders 13.5%, Primary dealers 17.5%Indirect bidders69.1%69.8%Direct bidders13.5%6.2%Primary dealers17.5%24.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders69.169.8
Direct bidders13.56.2
Primary dealers17.524.1

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$88,841,291,200
Sold$35,065,701,200
Competitive bids accepted$33,908,057,000
Non-competitive bids accepted$91,965,200
Federal Reserve (SOMA) add-on$1,065,679,000
Foreign and international (FIMA) non-competitive$0
High yield, %1.742
Median rate, %1.700
Low rate, %1.388
Interest rate (coupon), %1.625
Bids at the high rate filled, %18.98
Bid-to-cover ratio2.58
Indirect bidders accepted$23,417,647,000
Direct bidders accepted$4,565,000,000
Primary dealers accepted$5,925,410,000
Indirect bidders' share, % (ours)69.1
Direct bidders' share, % (ours)13.5
Primary dealers' share, % (ours)17.5
High minus median, basis points (ours)4.2
Treasury par yield curve, 5-year point, same day, %1.74
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 ratio2.58Last 24 auctions5 of 2418 of 242.44
Bid-to-cover ratio2.58Since 24 April 200861 of 11550 of 1152.60
Bid-to-cover ratio2.58All 192 since 28 September 199483 of 192104 of 1922.52
High yield1.742Last 24 auctions10 of 2414 of 241.456
High yield1.742Since 24 April 200844 of 11571 of 1151.572
High yield1.742All 288 since 24 January 1991217 of 28871 of 2883.718
Indirect bidders' share69.1Last 24 auctions2 of 2422 of 2459.8
Indirect bidders' share69.1All 115 since 24 April 20082 of 115113 of 11547.3
Direct bidders' share13.5Last 24 auctions0 of 2424 of 246.5
Direct bidders' share13.5All 115 since 24 April 200820 of 11595 of 1159.3
Primary dealers' share17.5Last 24 auctions24 of 240 of 2433.4
Primary dealers' share17.5All 115 since 24 April 2008115 of 1150 of 11541.4
High minus median, basis points4.2Last 24 auctions19 of 244 of 245.0
High minus median, basis points4.2Since 24 April 200865 of 11545 of 1154.6
High minus median, basis points4.2All 288 since 24 January 199183 of 288200 of 2883.1

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 28 August 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170828_4.pdf. Compiled by 500metrics, "5-year note auction of 28 August 2017 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2017-08-28.

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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