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5-year note auction of 24 January 2018 (new issue)

The 5-year note sold $38.997 billion at a high yield of 2.434% on , with a bid-to-cover ratio of 2.48.

Coupon
2.375%
Announced
Issued
Matures

High yield

2.434%

Median yield 2.390%

Bid-to-cover

2.48

▲ +0.04 since 25 Oct

Sold

$39.00 billion

$34 billion offered

Indirect bidders

65.0%

Of competitive bids accepted

The high yield was the highest for a 5-year note since 28 April 2010

High yield at each 5-year note auction, %

The high yield was the highest for a 5-year note since 28 April 201036 auctions from 27 May 2015 to 24 January 2018; the latest at 2.434%.0.5%1.0%1.5%2.0%2.5%2015201620172018This auction, 2.434%The high yield was the highest for a 5-year note since 28 April 201036 auctions from 27 May 2015 to 24 January 2018; the latest at 2.434%.0.5%1.0%1.5%2.0%2.5%2016201720182.434%

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
2.4342.48
2.0582.44
1.5962.74
1.9112.52
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.482.486 of 126 of 12
High yield2.4341.8980 of 1212 of 12
Indirect bidders' share65.066.97 of 125 of 12
Direct bidders' share9.17.74 of 128 of 12
Primary dealers' share26.026.06 of 126 of 12
High minus median, basis points4.45.08 of 123 of 12

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

Who bought the 5-year note?

Indirect bidders took 65.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 25 October 2017

Indirect bidders took 65.0% of the competitive bids acceptedIndirect bidders 65.0%, Direct bidders 9.1%, Primary dealers 26.0%Indirect bidders65.0%61.6%Direct bidders9.1%11.0%Primary dealers26.0%27.4%Indirect bidders took 65.0% of the competitive bids acceptedIndirect bidders 65.0%, Direct bidders 9.1%, Primary dealers 26.0%Indirect bidders65.0%61.6%Direct bidders9.1%11.0%Primary dealers26.0%27.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders65.061.6
Direct bidders9.111.0
Primary dealers26.027.4

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$34,000,000,000
Bids received$89,435,339,500
Sold$38,997,034,500
Competitive bids accepted$33,951,297,000
Non-competitive bids accepted$48,762,800
Federal Reserve (SOMA) add-on$4,996,974,700
Foreign and international (FIMA) non-competitive$0
High yield, %2.434
Median rate, %2.390
Low rate, %2.328
Interest rate (coupon), %2.375
Bids at the high rate filled, %53.03
Bid-to-cover ratio2.48
Indirect bidders accepted$22,062,632,000
Direct bidders accepted$3,078,000,000
Primary dealers accepted$8,810,665,000
Indirect bidders' share, % (ours)65.0
Direct bidders' share, % (ours)9.1
Primary dealers' share, % (ours)26.0
High minus median, basis points (ours)4.4
Treasury par yield curve, 5-year point, same day, %2.43
High yield minus that point, basis points (ours)0.4

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 ratio2.48Last 24 auctions10 of 2414 of 242.44
Bid-to-cover ratio2.48Since 24 April 200878 of 11940 of 1192.59
Bid-to-cover ratio2.48All 196 since 28 September 1994104 of 19690 of 1962.52
High yield2.434Last 24 auctions0 of 2424 of 241.669
High yield2.434Since 24 April 200814 of 119105 of 1191.595
High yield2.434All 292 since 24 January 1991186 of 292106 of 2923.657
Indirect bidders' share65.0Last 24 auctions10 of 2414 of 2462.4
Indirect bidders' share65.0All 119 since 24 April 200812 of 119107 of 11947.8
Direct bidders' share9.1Last 24 auctions7 of 2417 of 246.9
Direct bidders' share9.1All 119 since 24 April 200864 of 11955 of 1199.4
Primary dealers' share26.0Last 24 auctions15 of 249 of 2430.9
Primary dealers' share26.0All 119 since 24 April 2008107 of 11912 of 11941.0
High minus median, basis points4.4Last 24 auctions17 of 246 of 245.0
High minus median, basis points4.4Since 24 April 200864 of 11953 of 1194.6
High minus median, basis points4.4All 292 since 24 January 199179 of 292209 of 2923.1

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 24 January 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180124_2.pdf. Compiled by 500metrics, "5-year note auction of 24 January 2018 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2018-01-24.

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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