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5-year TIPS auction of 23 August 2018 (reopening)

The 5-year TIPS sold $14.987 billion at a high real yield of 0.724% on , with a bid-to-cover ratio of 2.78.

Coupon
0.625%
Announced
Issued
Matures

Real yield

0.724%

Median real yield 0.681%

Bid-to-cover

2.78

▲ +0.23 since 19 Apr

Sold

$14.99 billion

$14 billion offered

Indirect bidders

67.3%

Of competitive bids accepted

The high real yield was the highest for a 5-year TIPS since 26 October 2009

Real yield at each 5-year TIPS auction, %

The high real yield was the highest for a 5-year TIPS since 26 October 200935 auctions from 9 July 1997 to 23 August 2018; the latest at 0.724%.-2.0%0.0%2.0%4.0%2006200720082009201020112012201320142015201620172018This auction, 0.724%The high real yield was the highest for a 5-year TIPS since 26 October 200935 auctions from 9 July 1997 to 23 August 2018; the latest at 0.724%.-2.0%-1.0%0.0%1.0%201120122013201420152016201720180.724%

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

The 35 auctions as a table
Real yield and bid-to-cover of the last 35 5-year TIPS auctions, newest first
AuctionReal yield, %Bid-to-cover
0.7242.78
0.6312.55
0.3702.78
0.1172.41
-0.0492.52
0.1202.68
-0.2092.37
-0.1952.42
0.4722.38
0.3052.58
-0.3352.27
0.3952.37
-0.2812.48
-0.2132.70
-0.3752.54
-0.1272.18
-1.3112.18
-1.4962.70
-1.2863.11
-1.0802.58
-0.8773.01
-0.8252.49
-0.1802.57
-0.5502.84
0.5503.15
0.7693.10
1.2782.66
3.2701.81
0.7452.20
1.9542.44
2.1142.45
2.6912.89
2.3791.46
3.6003.56
3.744–

Against its own history

Against the previous 12 auctions of the 5-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.782.450 of 1211 of 12
High real yield0.7240.1180 of 1212 of 12
Indirect bidders' share67.365.25 of 127 of 12
Direct bidders' share13.57.61 of 1211 of 12
Primary dealers' share19.224.19 of 123 of 12
High minus median, basis points4.36.410 of 122 of 12

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

Who bought the 5-year TIPS?

Indirect bidders took 67.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 5-year TIPS auction, 19 April 2018

Indirect bidders took 67.3% of the competitive bids acceptedIndirect bidders 67.3%, Direct bidders 13.5%, Primary dealers 19.2%Indirect bidders67.3%62.4%Direct bidders13.5%14.3%Primary dealers19.2%23.2%Indirect bidders took 67.3% of the competitive bids acceptedIndirect bidders 67.3%, Direct bidders 13.5%, Primary dealers 19.2%Indirect bidders67.3%62.4%Direct bidders13.5%14.3%Primary dealers19.2%23.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders67.362.4
Direct bidders13.514.3
Primary dealers19.223.2

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as4-Year 8-Month, reopening
Offering amount$14,000,000,000
Bids received$39,838,584,700
Sold$14,986,736,700
Competitive bids accepted$13,964,787,300
Non-competitive bids accepted$35,221,200
Federal Reserve (SOMA) add-on$986,728,200
Foreign and international (FIMA) non-competitive$0
Real yield, %0.724
Median rate, %0.681
Low rate, %0.627
Interest rate (coupon), %0.625
Bids at the high rate filled, %69.55
Bid-to-cover ratio2.78
Indirect bidders accepted$9,393,787,300
Direct bidders accepted$1,890,000,000
Primary dealers accepted$2,681,000,000
Indirect bidders' share, % (ours)67.3
Direct bidders' share, % (ours)13.5
Primary dealers' share, % (ours)19.2
High minus median, basis points (ours)4.3
Treasury real par yield curve, 5-year point, same day, %0.73
High yield minus that point, basis points (ours)-0.6

Treasury's own files: announcement (PDF) · results (PDF)

How to read this result

The high real 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 real par yield curve comparison sets the high yield against Treasury's own real 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 TIPS auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.78Last 24 auctions4 of 2419 of 242.54
Bid-to-cover ratio2.78Since 22 April 20085 of 2822 of 282.54
Bid-to-cover ratio2.78All 33 since 8 October 19977 of 3325 of 332.54
High real yield0.724Last 24 auctions0 of 2424 of 24-0.202
High real yield0.724Since 22 April 20084 of 2824 of 28-0.154
High real yield0.724All 34 since 9 July 199710 of 3424 of 340.118
Indirect bidders' share67.3Last 24 auctions5 of 2419 of 2457.3
Indirect bidders' share67.3All 28 since 22 April 20085 of 2823 of 2848.9
Direct bidders' share13.5Last 24 auctions4 of 2420 of 248.1
Direct bidders' share13.5All 28 since 22 April 20084 of 2824 of 288.1
Primary dealers' share19.2Last 24 auctions21 of 243 of 2435.7
Primary dealers' share19.2All 28 since 22 April 200825 of 283 of 2840.3
High minus median, basis points4.3Last 24 auctions21 of 243 of 246.5
High minus median, basis points4.3Since 22 April 200824 of 284 of 286.5
High minus median, basis points4.3All 34 since 9 July 199727 of 347 of 346.4

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 23 August 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180823_1.pdf. Compiled by 500metrics, "5-year TIPS auction of 23 August 2018 (reopening)", https://500metrics.com/treasury/auctions/5-year-tips/2018-08-23.

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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