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5-year note auction of 25 July 2018 (new issue)

The 5-year note sold $37.955 billion at a high yield of 2.815% on , with a bid-to-cover ratio of 2.61.

Coupon
2.750%
Announced
Issued
Matures

High yield

2.815%

Median yield 2.779%

Bid-to-cover

2.61

▲ +0.06 since 27 Jun

Sold

$37.95 billion

$36 billion offered

Indirect bidders

67.2%

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 September 2015 to 25 July 2018; the latest at 2.815%.0.0%1.0%2.0%3.0%2015201620172018This auction, 2.815%High yield at the last 36 5-year note auctions36 auctions from 23 September 2015 to 25 July 2018; the latest at 2.815%.1.0%1.5%2.0%2.5%3.0%2016201720182.815%

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
2.8152.61
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.612.511 of 1211 of 12
High yield2.8152.2462 of 1210 of 12
Indirect bidders' share67.262.83 of 129 of 12
Direct bidders' share8.710.29 of 123 of 12
Primary dealers' share24.126.89 of 123 of 12
High minus median, basis points3.64.412 of 120 of 12

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

  • High minus median, basis points: Lowest for a 5-year note since 24 May 2017 (12 auctions in between).

Who bought the 5-year note?

Indirect bidders took 67.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 27 June 2018

Indirect bidders took 67.2% of the competitive bids acceptedIndirect bidders 67.2%, Direct bidders 8.7%, Primary dealers 24.1%Indirect bidders67.2%62.0%Direct bidders8.7%9.5%Primary dealers24.1%28.5%Indirect bidders took 67.2% of the competitive bids acceptedIndirect bidders 67.2%, Direct bidders 8.7%, Primary dealers 24.1%Indirect bidders67.2%62.0%Direct bidders8.7%9.5%Primary dealers24.1%28.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders67.262.0
Direct bidders8.79.5
Primary dealers24.128.5

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$96,050,286,400
Sold$37,954,982,400
Competitive bids accepted$35,966,433,000
Non-competitive bids accepted$33,701,100
Federal Reserve (SOMA) add-on$1,954,848,300
Foreign and international (FIMA) non-competitive$0
High yield, %2.815
Median rate, %2.779
Low rate, %2.710
Interest rate (coupon), %2.750
Bids at the high rate filled, %71.20
Bid-to-cover ratio2.61
Indirect bidders accepted$24,175,241,000
Direct bidders accepted$3,124,392,000
Primary dealers accepted$8,666,800,000
Indirect bidders' share, % (ours)67.2
Direct bidders' share, % (ours)8.7
Primary dealers' share, % (ours)24.1
High minus median, basis points (ours)3.6
Treasury par yield curve, 5-year point, same day, %2.82
High yield minus that point, basis points (ours)-0.5

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 ratio2.61Last 24 auctions3 of 2421 of 242.48
Bid-to-cover ratio2.61Since 24 April 200855 of 12567 of 1252.58
Bid-to-cover ratio2.61All 202 since 28 September 199472 of 202125 of 2022.52
High yield2.815Last 24 auctions2 of 2422 of 241.898
High yield2.815Since 24 April 20089 of 125116 of 1251.615
High yield2.815All 298 since 24 January 1991177 of 298121 of 2983.584
Indirect bidders' share67.2Last 24 auctions7 of 2417 of 2461.8
Indirect bidders' share67.2All 125 since 24 April 20089 of 125116 of 12548.9
Direct bidders' share8.7Last 24 auctions9 of 2415 of 247.7
Direct bidders' share8.7All 125 since 24 April 200871 of 12554 of 1259.5
Primary dealers' share24.1Last 24 auctions20 of 244 of 2428.3
Primary dealers' share24.1All 125 since 24 April 2008119 of 1256 of 12540.5
High minus median, basis points3.6Last 24 auctions23 of 241 of 244.4
High minus median, basis points3.6Since 24 April 200892 of 12533 of 1254.5
High minus median, basis points3.6All 298 since 24 January 1991123 of 298174 of 2983.1

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 25 July 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180725_2.pdf. Compiled by 500metrics, "5-year note auction of 25 July 2018 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2018-07-25.

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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