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

The 5-year note sold $43.513 billion at a high yield of 2.880% on , with a bid-to-cover ratio of 2.49.

Coupon
2.875%
Announced
Issued
Matures

High yield

2.880%

Median yield 2.849%

Bid-to-cover

2.49

▲ +0.19 since 24 Oct

Sold

$43.51 billion

$40 billion offered

Indirect bidders

59.9%

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 29 December 2015 to 27 November 2018; the latest at 2.880%.0.0%1.0%2.0%3.0%201620172018This auction, 2.880%High yield at the last 36 5-year note auctions36 auctions from 29 December 2015 to 27 November 2018; the latest at 2.880%.1.5%2.0%2.5%3.0%201720182.880%

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
2.8802.49
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

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.492.495 of 125 of 12
High yield2.8802.7422 of 1210 of 12
Indirect bidders' share59.960.97 of 125 of 12
Direct bidders' share10.39.45 of 127 of 12
Primary dealers' share29.828.34 of 128 of 12
High minus median, basis points3.14.211 of 120 of 12

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

Who bought the 5-year note?

Indirect bidders took 59.9% of the competitive bids accepted

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

Indirect bidders took 59.9% of the competitive bids acceptedIndirect bidders 59.9%, Direct bidders 10.3%, Primary dealers 29.8%Indirect bidders59.9%59.0%Direct bidders10.3%1.9%Primary dealers29.8%39.1%Indirect bidders took 59.9% of the competitive bids acceptedIndirect bidders 59.9%, Direct bidders 10.3%, Primary dealers 29.8%Indirect bidders59.9%59.0%Direct bidders10.3%1.9%Primary dealers29.8%39.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders59.959.0
Direct bidders10.31.9
Primary dealers29.839.1

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$40,000,000,000
Bids received$103,308,023,700
Sold$43,512,625,200
Competitive bids accepted$39,853,291,500
Non-competitive bids accepted$46,739,000
Federal Reserve (SOMA) add-on$3,512,594,700
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.880
Median rate, %2.849
Low rate, %2.780
Interest rate (coupon), %2.875
Bids at the high rate filled, %71.92
Bid-to-cover ratio2.49
Indirect bidders accepted$23,870,931,500
Direct bidders accepted$4,115,900,000
Primary dealers accepted$11,866,460,000
Indirect bidders' share, % (ours)59.9
Direct bidders' share, % (ours)10.3
Primary dealers' share, % (ours)29.8
High minus median, basis points (ours)3.1
Treasury par yield curve, 5-year point, same day, %2.89
High yield minus that point, basis points (ours)-1.0

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 auctions10 of 2411 of 242.49
Bid-to-cover ratio2.49Since 24 April 200880 of 12945 of 1292.58
Bid-to-cover ratio2.49All 206 since 28 September 1994106 of 20696 of 2062.51
High yield2.880Last 24 auctions2 of 2422 of 242.022
High yield2.880Since 24 April 20088 of 129121 of 1291.646
High yield2.880All 302 since 24 January 1991176 of 302126 of 3023.520
Indirect bidders' share59.9Last 24 auctions15 of 249 of 2462.7
Indirect bidders' share59.9All 129 since 24 April 200828 of 129101 of 12949.3
Direct bidders' share10.3Last 24 auctions6 of 2418 of 248.6
Direct bidders' share10.3All 129 since 24 April 200853 of 12976 of 1299.3
Primary dealers' share29.8Last 24 auctions9 of 2415 of 2427.8
Primary dealers' share29.8All 129 since 24 April 2008106 of 12923 of 12940.3
High minus median, basis points3.1Last 24 auctions22 of 240 of 244.4
High minus median, basis points3.1Since 24 April 2008113 of 12911 of 1294.4
High minus median, basis points3.1All 302 since 24 January 1991150 of 302142 of 3023.1

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 November 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20181127_3.pdf. Compiled by 500metrics, "5-year note auction of 27 November 2018 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2018-11-27.

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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