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5-year note auction of 28 August 2023 (new issue)

The 5-year note sold $50.779 billion at a high yield of 4.400% on , with a bid-to-cover ratio of 2.54.

Coupon
4.375%
Announced
Issued
Matures

High yield

4.400%

Median yield 4.330%

Bid-to-cover

2.54

▼ −0.06 since 25 Jul

Sold

$50.78 billion

$46 billion offered

Indirect bidders

67.9%

Of competitive bids accepted

The high yield was the highest for a 5-year note since 26 July 2007

High yield at each 5-year note auction, %

The high yield was the highest for a 5-year note since 26 July 200736 auctions from 26 August 2020 to 28 August 2023; the latest at 4.400%.0.0%2.0%4.0%6.0%2020202120222023This auction, 4.400%The high yield was the highest for a 5-year note since 26 July 200736 auctions from 26 August 2020 to 28 August 2023; the latest at 4.400%.0.0%1.0%2.0%3.0%4.0%5.0%2021202220234.400%

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
4.4002.54
4.1702.60
4.0192.52
3.7492.58
3.5002.54
3.6652.48
4.1092.48
3.5302.64
3.9732.46
3.9742.39
4.1922.48
4.2282.27
3.2302.30
2.8602.46
3.2712.28
2.7362.44
2.7852.41
2.5432.53
1.8802.49
1.2632.41
1.3192.34
1.1572.55
0.9902.37
0.8312.35
0.7102.36
0.9042.36
0.7882.49
0.8492.31
0.8502.36
0.6212.24
0.4242.34
0.3942.39
0.3972.38
0.3302.38
0.2752.52
0.2982.71

Against its own history

Against the previous 12 auctions of the 5-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.542.483 of 128 of 12
High yield4.4003.9740 of 1212 of 12
Indirect bidders' share67.968.07 of 125 of 12
Direct bidders' share18.318.46 of 126 of 12
Primary dealers' share13.813.65 of 127 of 12
High minus median, basis points7.07.37 of 124 of 12

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

Who bought the 5-year note?

Indirect bidders took 67.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year note auction, 25 July 2023

Indirect bidders took 67.9% of the competitive bids acceptedIndirect bidders 67.9%, Direct bidders 18.3%, Primary dealers 13.8%Indirect bidders67.9%64.4%Direct bidders18.3%22.1%Primary dealers13.8%13.5%Indirect bidders took 67.9% of the competitive bids acceptedIndirect bidders 67.9%, Direct bidders 18.3%, Primary dealers 13.8%Indirect bidders67.9%64.4%Direct bidders18.3%22.1%Primary dealers13.8%13.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders67.964.4
Direct bidders18.322.1
Primary dealers13.813.5

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$46,000,000,000
Bids received$121,402,759,900
Sold$50,779,277,000
Competitive bids accepted$45,794,512,100
Non-competitive bids accepted$200,589,000
Federal Reserve (SOMA) add-on$4,779,175,900
Foreign and international (FIMA) non-competitive$5,000,000
High yield, %4.400
Median rate, %4.330
Low rate, %4.300
Interest rate (coupon), %4.375
Bids at the high rate filled, %32.63
Bid-to-cover ratio2.54
Indirect bidders accepted$31,103,042,500
Direct bidders accepted$8,359,429,600
Primary dealers accepted$6,332,040,000
Indirect bidders' share, % (ours)67.9
Direct bidders' share, % (ours)18.3
Primary dealers' share, % (ours)13.8
High minus median, basis points (ours)7.0
Treasury par yield curve, 5-year point, same day, %4.38
High yield minus that point, basis points (ours)2.0

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 ratio2.54Last 24 auctions4 of 2419 of 242.46
Bid-to-cover ratio2.54Since 24 April 200880 of 183100 of 1832.50
Bid-to-cover ratio2.54All 260 since 28 September 1994103 of 260154 of 2602.48
High yield4.400Last 24 auctions0 of 2424 of 243.250
High yield4.400Since 24 April 20080 of 183183 of 1831.625
High yield4.400All 356 since 24 January 1991128 of 356228 of 3563.190
Indirect bidders' share67.9Last 24 auctions7 of 2417 of 2464.6
Indirect bidders' share67.9All 183 since 24 April 200814 of 183169 of 18356.4
Direct bidders' share18.3Last 24 auctions12 of 2412 of 2418.3
Direct bidders' share18.3All 183 since 24 April 200821 of 183162 of 18310.9
Primary dealers' share13.8Last 24 auctions16 of 248 of 2416.9
Primary dealers' share13.8All 183 since 24 April 2008175 of 1838 of 18335.4
High minus median, basis points7.0Last 24 auctions10 of 2413 of 246.9
High minus median, basis points7.0Since 24 April 200822 of 183158 of 1834.7
High minus median, basis points7.0All 356 since 24 January 199122 of 356330 of 3563.5

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 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230828_4.pdf. Compiled by 500metrics, "5-year note auction of 28 August 2023 (new issue)", https://500metrics.com/treasury/auctions/5-year-note/2023-08-28.

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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