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5-year note auction of 21 February 2018 (new issue)

The 5-year note sold $43.533 billion at a high yield of 2.658% on , with a bid-to-cover ratio of 2.44.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.658%

Median yield 2.617%

Bid-to-cover

2.44

▼ −0.04 since 24 Jan

Sold

$43.53 billion

$35 billion offered

Indirect bidders

58.0%

Of competitive bids accepted

The high yield was the highest for a 5-year note since 29 December 2009

High yield at each 5-year note auction, %

The high yield was the highest for a 5-year note since 29 December 200936 auctions from 24 June 2015 to 21 February 2018; the latest at 2.658%.0.5%1.0%1.5%2.0%2.5%3.0%2015201620172018This auction, 2.658%The high yield was the highest for a 5-year note since 29 December 200936 auctions from 24 June 2015 to 21 February 2018; the latest at 2.658%.1.0%1.5%2.0%2.5%3.0%2016201720182.658%

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
2.6582.44
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.442.466 of 125 of 12
High yield2.6581.8980 of 1212 of 12
Indirect bidders' share58.065.110 of 122 of 12
Direct bidders' share12.78.52 of 1210 of 12
Primary dealers' share29.326.24 of 128 of 12
High minus median, basis points4.15.011 of 121 of 12

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

Who bought the 5-year note?

Indirect bidders took 58.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 24 January 2018

Indirect bidders took 58.0% of the competitive bids acceptedIndirect bidders 58.0%, Direct bidders 12.7%, Primary dealers 29.3%Indirect bidders58.0%65.0%Direct bidders12.7%9.1%Primary dealers29.3%26.0%Indirect bidders took 58.0% of the competitive bids acceptedIndirect bidders 58.0%, Direct bidders 12.7%, Primary dealers 29.3%Indirect bidders58.0%65.0%Direct bidders12.7%9.1%Primary dealers29.3%26.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders58.065.0
Direct bidders12.79.1
Primary dealers29.326.0

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$94,086,174,900
Sold$43,532,854,900
Competitive bids accepted$34,910,309,000
Non-competitive bids accepted$89,723,400
Federal Reserve (SOMA) add-on$8,532,822,500
Foreign and international (FIMA) non-competitive$0
High yield, %2.658
Median rate, %2.617
Low rate, %2.188
Interest rate (coupon), %2.625
Bids at the high rate filled, %45.30
Bid-to-cover ratio2.44
Indirect bidders accepted$20,259,879,000
Direct bidders accepted$4,422,000,000
Primary dealers accepted$10,228,430,000
Indirect bidders' share, % (ours)58.0
Direct bidders' share, % (ours)12.7
Primary dealers' share, % (ours)29.3
High minus median, basis points (ours)4.1
Treasury par yield curve, 5-year point, same day, %2.69
High yield minus that point, basis points (ours)-3.2

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 ratio2.44Last 24 auctions11 of 2410 of 242.44
Bid-to-cover ratio2.44Since 24 April 200884 of 12031 of 1202.59
Bid-to-cover ratio2.44All 197 since 28 September 1994115 of 19777 of 1972.52
High yield2.658Last 24 auctions0 of 2424 of 241.751
High yield2.658Since 24 April 200810 of 120110 of 1201.596
High yield2.658All 293 since 24 January 1991181 of 293112 of 2933.651
Indirect bidders' share58.0Last 24 auctions18 of 246 of 2463.4
Indirect bidders' share58.0All 120 since 24 April 200829 of 12091 of 12048.0
Direct bidders' share12.7Last 24 auctions2 of 2422 of 246.9
Direct bidders' share12.7All 120 since 24 April 200826 of 12094 of 1209.4
Primary dealers' share29.3Last 24 auctions12 of 2412 of 2428.6
Primary dealers' share29.3All 120 since 24 April 2008103 of 12017 of 12040.8
High minus median, basis points4.1Last 24 auctions21 of 243 of 244.8
High minus median, basis points4.1Since 24 April 200875 of 12041 of 1204.6
High minus median, basis points4.1All 293 since 24 January 199193 of 293194 of 2933.1

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 21 February 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180221_2.pdf. Compiled by 500metrics, "5-year note auction of 21 February 2018 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2018-02-21.

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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