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Treasury auctions · 1-Year 11-Month FRN, reopening

2-year FRN auction of 29 August 2018 (reopening)

The 2-year FRN sold $18.198 billion at a high discount margin of 0.047% on , with a bid-to-cover ratio of 2.94.

Discount margin at each 2-year FRN auction

The last 36 auctions, this one last

Discount margin at each 2-year FRN auction, 23 Sep 2015 to 29 Aug 2018
Discount margin at each 2-year FRN auction, 28 Sep 2016 to 29 Aug 2018

Bid-to-cover ratio at each 2-year FRN auction

The last 36 auctions, this one last

Bid-to-cover ratio at each 2-year FRN auction, 23 Sep 2015 to 29 Aug 2018
Bid-to-cover ratio at each 2-year FRN auction, 28 Sep 2016 to 29 Aug 2018

Who bought the 2-year FRN of 29 Aug 2018

Shares of the competitive bids accepted

  • Indirect bidders 39.5%
  • Direct bidders 8.5%
  • Primary dealers 51.9%
This auction, 29 Aug 2018
  • Indirect bidders 51.4%
  • Direct bidders 6.3%
  • Primary dealers 42.3%
The 2-year FRN auction before, 25 Jul 2018

Each point is one 2-year FRN auction, this one last; pointing at the chart shows its date and figures.

Select a line to followLatest:

  • Indirect bidders39.5%
Inspect and compare dates
Discount margin and bid-to-cover of the last 36 2-year FRN auctions, newest first
AuctionDiscount margin, %Bid-to-cover
0.0472.94
0.0432.79
0.0422.79
0.0283.26
0.0333.65
0.0492.78
0.0162.75
0.0003.38
0.0353.26
0.0353.69
0.0483.56
0.0553.46
0.0603.09
0.0603.32
0.0803.13
0.0502.99
0.0703.35
0.1093.43
0.1333.08
0.1403.16
0.1693.80
0.1693.32
0.1703.35
0.1803.09
0.1653.46
0.1743.82
0.1883.15
0.1883.35
0.1903.57
0.2403.07
0.2373.63
0.2723.67
0.3303.48
0.2163.11
0.1683.10
0.1202.87

Observed .

Right now

The high discount margin was 0.047% on 29 August 2018, up from 0.043% at the auction before.

Higher than 10 of the 55 since 29 January 2014

Its own history

Against the previous 24 2-year FRN auctions, the direct bidders' share was higher than 22 of the 24.

The bid-to-cover ratio was higher than 4 of them.

See every measure against earlier auctions

Who bought

Primary dealers took the largest share of the competitive bids accepted.

  • Indirect bidders 39.5%
  • Direct bidders 8.5%
  • Primary dealers 51.9%

Size

Treasury sold $18.198 billion of the $17 billion offered.

Bids received came to $51.242 billion; the bid-to-cover ratio was 2.94.

Its bid-to-cover of 2.94 compares with the 24 auctions before it: lowest 2.75 on , highest 3.80 on ; 18.1% of the way from the low to the high.

2.94

Low 2.75 Midpoint 3.275 High 3.80

The security1-Year 11-Month, reopening

Announced
Issued
Matures

It adds to the debt that matures in July 2020.

Understanding this result

Where it stands today

The high discount margin was 0.047% at this 2-year FRN auction, the median discount margin 0.040% and a bid-to-cover ratio of 2.94.

What do these figures measure?

The high discount margin 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.

Read more

What these figures cannot tell

  • 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 numbers behind the chart

What did Treasury publish for this auction?Every field, to the dollar
FieldValue
Offered as1-Year 11-Month, reopening
Offering amount$17,000,000,000
Bids received$51,241,660,200
Sold$18,198,222,700
Competitive bids accepted$16,974,762,500
Non-competitive bids accepted$25,290,100
Federal Reserve (SOMA) add-on$1,198,170,100
Foreign and international (FIMA) non-competitive$0
Discount margin, %0.047
Median rate, %0.040
Low rate, %0.020
Interest rate (coupon), %–
Spread, %0.043
Bids at the high rate filled, %66.65
Bid-to-cover ratio2.94
Indirect bidders accepted$6,712,837,500
Direct bidders accepted$1,450,000,000
Primary dealers accepted$8,811,925,000
Indirect bidders' share, % (ours)39.5
Direct bidders' share, % (ours)8.5
Primary dealers' share, % (ours)51.9
High minus median, basis points (ours)0.7
How does it compare with earlier auctions?The previous 12 auctions, then every window
Against the previous 12 auctions of the 2-year FRN
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.943.268 of 124 of 12
High discount margin0.0470.0384 of 128 of 12
Indirect bidders' share39.548.28 of 124 of 12
Direct bidders' share8.53.82 of 1210 of 12
Primary dealers' share51.949.34 of 128 of 12
High minus median, basis points0.70.86 of 125 of 12

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

The longer windows

Each measure against earlier 2-year FRN auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.94Last 24 auctions20 of 244 of 243.29
Bid-to-cover ratio2.94All 55 since 29 January 201449 of 556 of 553.48
High discount margin0.047Last 24 auctions16 of 248 of 240.058
High discount margin0.047All 55 since 29 January 201445 of 5510 of 550.074
Indirect bidders' share39.5Last 24 auctions16 of 248 of 2447.1
Indirect bidders' share39.5All 55 since 29 January 201439 of 5516 of 5546.5
Direct bidders' share8.5Last 24 auctions2 of 2422 of 240.8
Direct bidders' share8.5All 55 since 29 January 20145 of 5550 of 551.9
Primary dealers' share51.9Last 24 auctions11 of 2413 of 2451.2
Primary dealers' share51.9All 55 since 29 January 201426 of 5529 of 5550.9
High minus median, basis points0.7Last 24 auctions14 of 249 of 240.8
High minus median, basis points0.7All 55 since 29 January 201431 of 5523 of 550.8

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

When are the figures from, and how are they cited?Dates and how to cite

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 to cite this

U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 29 August 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180829_1.pdf. Compiled by 500metrics, "2-year FRN auction of 29 August 2018 (reopening)", https://500metrics.com/treasury/auctions/2-year-frn/2018-08-29.

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