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

The 5-year note sold $39 billion at a high yield of 2.977% on , with a bid-to-cover ratio of 2.30.

Coupon
2.875%
Announced
Issued
Matures

High yield

2.977%

Median yield 2.940%

Bid-to-cover

2.30

▼ −0.09 since 25 Sep

Sold

$39.00 billion

$39 billion offered

Indirect bidders

59.0%

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 24 November 2015 to 24 October 2018; the latest at 2.977%.0.0%1.0%2.0%3.0%201620172018This auction, 2.977%High yield at the last 36 5-year note auctions36 auctions from 24 November 2015 to 24 October 2018; the latest at 2.977%.1.0%1.5%2.0%2.5%3.0%201720182.977%

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
2.9772.30
2.9972.39
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.302.5012 of 120 of 12
High yield2.9772.6881 of 1211 of 12
Indirect bidders' share59.061.88 of 124 of 12
Direct bidders' share1.99.412 of 120 of 12
Primary dealers' share39.127.80 of 1212 of 12
High minus median, basis points3.74.39 of 122 of 12

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

  • Bid-to-cover ratio: Lowest for a 5-year note since 22 February 2017 (18 auctions in between).
  • Direct bidders' share: Lowest for a 5-year note since 29 July 2009 (112 auctions in between).
  • Primary dealers' share: Highest for a 5-year note since 26 July 2016 (25 auctions in between).

Who bought the 5-year note?

Indirect bidders took 59.0% of the competitive bids accepted

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

Indirect bidders took 59.0% of the competitive bids acceptedIndirect bidders 59.0%, Direct bidders 1.9%, Primary dealers 39.1%Indirect bidders59.0%57.9%Direct bidders1.9%9.2%Primary dealers39.1%32.9%Indirect bidders took 59.0% of the competitive bids acceptedIndirect bidders 59.0%, Direct bidders 1.9%, Primary dealers 39.1%Indirect bidders59.0%57.9%Direct bidders1.9%9.2%Primary dealers39.1%32.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders59.057.9
Direct bidders1.99.2
Primary dealers39.132.9

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$39,000,000,000
Bids received$89,826,730,200
Sold$39,000,005,200
Competitive bids accepted$38,858,615,000
Non-competitive bids accepted$41,390,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.977
Median rate, %2.940
Low rate, %2.850
Interest rate (coupon), %2.875
Bids at the high rate filled, %48.65
Bid-to-cover ratio2.30
Indirect bidders accepted$22,928,965,000
Direct bidders accepted$727,000,000
Primary dealers accepted$15,202,650,000
Indirect bidders' share, % (ours)59.0
Direct bidders' share, % (ours)1.9
Primary dealers' share, % (ours)39.1
High minus median, basis points (ours)3.7
Treasury par yield curve, 5-year point, same day, %2.94
High yield minus that point, basis points (ours)3.7

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 ratio2.30Last 24 auctions23 of 241 of 242.49
Bid-to-cover ratio2.30Since 24 April 2008114 of 12814 of 1282.58
Bid-to-cover ratio2.30All 205 since 28 September 1994152 of 20553 of 2052.51
High yield2.977Last 24 auctions1 of 2423 of 241.969
High yield2.977Since 24 April 20087 of 128121 of 1281.636
High yield2.977All 301 since 24 January 1991174 of 301127 of 3013.520
Indirect bidders' share59.0Last 24 auctions18 of 246 of 2462.7
Indirect bidders' share59.0All 128 since 24 April 200830 of 12898 of 12849.1
Direct bidders' share1.9Last 24 auctions24 of 240 of 248.6
Direct bidders' share1.9All 128 since 24 April 2008117 of 12811 of 1289.4
Primary dealers' share39.1Last 24 auctions0 of 2424 of 2427.8
Primary dealers' share39.1All 128 since 24 April 200870 of 12858 of 12840.3
High minus median, basis points3.7Last 24 auctions19 of 243 of 244.4
High minus median, basis points3.7Since 24 April 200888 of 12835 of 1284.4
High minus median, basis points3.7All 301 since 24 January 1991118 of 301177 of 3013.1

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 October 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20181024_2.pdf. Compiled by 500metrics, "5-year note auction of 24 October 2018 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2018-10-24.

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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