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5-year note auction of 28 August 2018 (new issue)

The 5-year note sold $39.608 billion at a high yield of 2.765% on , with a bid-to-cover ratio of 2.49.

Coupon
2.750%
Announced
Issued
Matures

High yield

2.765%

Median yield 2.721%

Bid-to-cover

2.49

▼ −0.12 since 25 Jul

Sold

$39.61 billion

$37 billion offered

Indirect bidders

66.2%

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 28 October 2015 to 28 August 2018; the latest at 2.765%.0.0%1.0%2.0%3.0%2015201620172018This auction, 2.765%High yield at the last 36 5-year note auctions36 auctions from 28 October 2015 to 28 August 2018; the latest at 2.765%.1.0%1.5%2.0%2.5%3.0%2016201720182.765%

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
2.7652.49
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.492.528 of 123 of 12
High yield2.7652.5233 of 129 of 12
Indirect bidders' share66.262.84 of 128 of 12
Direct bidders' share9.010.28 of 124 of 12
Primary dealers' share24.726.88 of 124 of 12
High minus median, basis points4.44.33 of 126 of 12

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

Who bought the 5-year note?

Indirect bidders took 66.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 25 July 2018

Indirect bidders took 66.2% of the competitive bids acceptedIndirect bidders 66.2%, Direct bidders 9.0%, Primary dealers 24.7%Indirect bidders66.2%67.2%Direct bidders9.0%8.7%Primary dealers24.7%24.1%Indirect bidders took 66.2% of the competitive bids acceptedIndirect bidders 66.2%, Direct bidders 9.0%, Primary dealers 24.7%Indirect bidders66.2%67.2%Direct bidders9.0%8.7%Primary dealers24.7%24.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders66.267.2
Direct bidders9.08.7
Primary dealers24.724.1

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$37,000,000,000
Bids received$94,865,090,100
Sold$39,607,828,100
Competitive bids accepted$36,946,038,000
Non-competitive bids accepted$54,008,400
Federal Reserve (SOMA) add-on$2,607,781,700
Foreign and international (FIMA) non-competitive$0
High yield, %2.765
Median rate, %2.721
Low rate, %2.600
Interest rate (coupon), %2.750
Bids at the high rate filled, %43.94
Bid-to-cover ratio2.49
Indirect bidders accepted$24,474,488,800
Direct bidders accepted$3,330,000,000
Primary dealers accepted$9,141,549,200
Indirect bidders' share, % (ours)66.2
Direct bidders' share, % (ours)9.0
Primary dealers' share, % (ours)24.7
High minus median, basis points (ours)4.4
Treasury par yield curve, 5-year point, same day, %2.77
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 ratio2.49Last 24 auctions11 of 2411 of 242.49
Bid-to-cover ratio2.49Since 24 April 200880 of 12643 of 1262.58
Bid-to-cover ratio2.49All 203 since 28 September 1994106 of 20394 of 2032.52
High yield2.765Last 24 auctions3 of 2421 of 241.924
High yield2.765Since 24 April 200810 of 126116 of 1261.620
High yield2.765All 299 since 24 January 1991178 of 299121 of 2993.550
Indirect bidders' share66.2Last 24 auctions8 of 2416 of 2462.7
Indirect bidders' share66.2All 126 since 24 April 200811 of 126115 of 12648.9
Direct bidders' share9.0Last 24 auctions9 of 2415 of 248.4
Direct bidders' share9.0All 126 since 24 April 200869 of 12657 of 1269.4
Primary dealers' share24.7Last 24 auctions18 of 246 of 2427.8
Primary dealers' share24.7All 126 since 24 April 2008118 of 1268 of 12640.4
High minus median, basis points4.4Last 24 auctions11 of 2410 of 244.4
High minus median, basis points4.4Since 24 April 200864 of 12658 of 1264.5
High minus median, basis points4.4All 299 since 24 January 199179 of 299214 of 2993.1

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 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180828_2.pdf. Compiled by 500metrics, "5-year note auction of 28 August 2018 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2018-08-28.

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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