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5-year note auction of 27 June 2018 (new issue)

The 5-year note sold $40.483 billion at a high yield of 2.719% on , with a bid-to-cover ratio of 2.55.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.719%

Median yield 2.680%

Bid-to-cover

2.55

▲ +0.03 since 23 May

Sold

$40.48 billion

$36 billion offered

Indirect bidders

62.0%

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 22 September 2015 to 27 June 2018; the latest at 2.719%.0.0%1.0%2.0%3.0%2015201620172018This auction, 2.719%High yield at the last 36 5-year note auctions36 auctions from 22 September 2015 to 27 June 2018; the latest at 2.719%.1.0%1.5%2.0%2.5%3.0%2016201720182.719%

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
2.7192.55
2.8642.52
2.8372.49
2.6122.50
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.552.514 of 128 of 12
High yield2.7191.9842 of 1210 of 12
Indirect bidders' share62.064.27 of 125 of 12
Direct bidders' share9.510.06 of 126 of 12
Primary dealers' share28.526.13 of 129 of 12
High minus median, basis points3.94.410 of 122 of 12

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

Who bought the 5-year note?

Indirect bidders took 62.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 23 May 2018

Indirect bidders took 62.0% of the competitive bids acceptedIndirect bidders 62.0%, Direct bidders 9.5%, Primary dealers 28.5%Indirect bidders62.0%56.2%Direct bidders9.5%10.9%Primary dealers28.5%32.9%Indirect bidders took 62.0% of the competitive bids acceptedIndirect bidders 62.0%, Direct bidders 9.5%, Primary dealers 28.5%Indirect bidders62.0%56.2%Direct bidders9.5%10.9%Primary dealers28.5%32.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders62.056.2
Direct bidders9.510.9
Primary dealers28.532.9

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$36,000,000,000
Bids received$96,120,100,300
Sold$40,483,394,000
Competitive bids accepted$35,963,725,700
Non-competitive bids accepted$36,395,800
Federal Reserve (SOMA) add-on$4,483,272,500
Foreign and international (FIMA) non-competitive$0
High yield, %2.719
Median rate, %2.680
Low rate, %2.600
Interest rate (coupon), %2.625
Bids at the high rate filled, %83.93
Bid-to-cover ratio2.55
Indirect bidders accepted$22,307,609,500
Direct bidders accepted$3,415,000,000
Primary dealers accepted$10,241,116,200
Indirect bidders' share, % (ours)62.0
Direct bidders' share, % (ours)9.5
Primary dealers' share, % (ours)28.5
High minus median, basis points (ours)3.9
Treasury par yield curve, 5-year point, same day, %2.71
High yield minus that point, basis points (ours)0.9

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 ratio2.55Last 24 auctions6 of 2418 of 242.48
Bid-to-cover ratio2.55Since 24 April 200870 of 12453 of 1242.58
Bid-to-cover ratio2.55All 201 since 28 September 199493 of 201107 of 2012.51
High yield2.719Last 24 auctions2 of 2422 of 241.880
High yield2.719Since 24 April 20089 of 124115 of 1241.608
High yield2.719All 297 since 24 January 1991178 of 297119 of 2973.617
Indirect bidders' share62.0Last 24 auctions12 of 2412 of 2462.4
Indirect bidders' share62.0All 124 since 24 April 200819 of 124105 of 12448.6
Direct bidders' share9.5Last 24 auctions7 of 2417 of 247.7
Direct bidders' share9.5All 124 since 24 April 200861 of 12463 of 1249.4
Primary dealers' share28.5Last 24 auctions11 of 2413 of 2427.8
Primary dealers' share28.5All 124 since 24 April 2008105 of 12419 of 12440.5
High minus median, basis points3.9Last 24 auctions20 of 243 of 244.5
High minus median, basis points3.9Since 24 April 200884 of 12438 of 1244.5
High minus median, basis points3.9All 297 since 24 January 1991113 of 297181 of 2973.1

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 27 June 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180627_2.pdf. Compiled by 500metrics, "5-year note auction of 27 June 2018 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2018-06-27.

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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