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Treasury auctions · 2-Year Note

2-year note auction of 26 September 2016 (new issue)

The 2-year note sold $27.585 billion at a high yield of 0.750% on , with a bid-to-cover ratio of 2.65.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 28 May 2013 to 26 Sep 2016
High yield at each 2-year note auction, 28 Oct 2014 to 26 Sep 2016

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

The last 36 auctions, this one last

Bid-to-cover ratio at each 2-year note auction, 28 May 2013 to 26 Sep 2016
Bid-to-cover ratio at each 2-year note auction, 28 Oct 2014 to 26 Sep 2016

Who bought the 2-year note of 26 Sep 2016

Shares of the competitive bids accepted

  • Indirect bidders 36.7%
  • Direct bidders 19.0%
  • Primary dealers 44.4%
This auction, 26 Sep 2016
  • Indirect bidders 45.8%
  • Direct bidders 25.2%
  • Primary dealers 29.0%
The 2-year note auction before, 23 Aug 2016

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

Select a line to followLatest:

  • Indirect bidders36.7%
Inspect and compare dates
High yield and bid-to-cover of the last 36 2-year note auctions, newest first
AuctionHigh yield, %Bid-to-cover
0.7502.65
0.7602.83
0.7602.52
0.7452.72
0.9203.00
0.8422.64
0.8772.58
0.8602.90
1.0562.80
0.9483.15
0.6903.42
0.6923.28
0.5403.30
0.5983.46
0.6033.45
0.5403.74
0.7033.21
0.5423.71
0.4253.11
0.5893.56
0.5303.48
0.5443.22
0.5113.23
0.3923.52
0.4473.35
0.4693.20
0.3403.60
0.3803.30
0.3453.77
0.3003.54
0.3233.32
0.3483.09
0.3863.21
0.3363.08
0.4303.05
0.2833.04

Observed .

Right now

The high yield was 0.750% on 26 September 2016, down from 0.760% at the auction before.

Higher than 61 of the 96 since 23 April 2008

Its own history

Against the previous 24 2-year note auctions, the direct bidders' share was higher than 18 of the 24.

The bid-to-cover ratio was higher than 3 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 36.7%
  • Direct bidders 19.0%
  • Primary dealers 44.4%

Size

Treasury sold $27.585 billion of the $26 billion offered.

Bids received came to $70.55 billion; the bid-to-cover ratio was 2.65.

Its bid-to-cover of 2.65 compares with the 24 auctions before it: lowest 2.52 on , highest 3.74 on ; 10.7% of the way from the low to the high.

2.65

Low 2.52 Midpoint 3.130 High 3.74

The security2-Year, new issue

Coupon
0.750%
Announced
Issued
Matures

It adds to the debt that matures in September 2018.

Understanding this result

Where it stands today

The high yield was 0.750% at this 2-year note auction, the median yield 0.725% and a bid-to-cover ratio of 2.65.

What do these figures measure?

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.

Read more

How does it compare with the par yield curve?

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 (2-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 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 as2-Year, new issue
Offering amount$26,000,000,000
Bids received$70,549,964,800
Sold$27,585,092,300
Competitive bids accepted$25,825,977,500
Non-competitive bids accepted$174,197,100
Federal Reserve (SOMA) add-on$1,584,917,700
Foreign and international (FIMA) non-competitive$0
High yield, %0.750
Median rate, %0.725
Low rate, %0.650
Interest rate (coupon), %0.750
Bids at the high rate filled, %98.65
Bid-to-cover ratio2.65
Indirect bidders accepted$9,468,490,000
Direct bidders accepted$4,898,250,000
Primary dealers accepted$11,459,237,500
Indirect bidders' share, % (ours)36.7
Direct bidders' share, % (ours)19.0
Primary dealers' share, % (ours)44.4
High minus median, basis points (ours)2.5
Treasury par yield curve, 2-year point, same day, %0.76
High yield minus that point, basis points (ours)-1.0
How does it compare with earlier auctions?The previous 12 auctions, then every window
Against the previous 12 auctions of the 2-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.652.869 of 123 of 12
High yield0.7500.8018 of 124 of 12
Indirect bidders' share36.747.211 of 121 of 12
Direct bidders' share19.014.94 of 128 of 12
Primary dealers' share44.436.32 of 1210 of 12
High minus median, basis points2.53.611 of 121 of 12

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

The longer windows

Each measure against earlier 2-year note auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.65Last 24 auctions21 of 243 of 243.22
Bid-to-cover ratio2.65Since 23 April 200883 of 9613 of 963.23
Bid-to-cover ratio2.65All 195 since 27 October 1999103 of 19592 of 1952.69
High yield0.750Last 24 auctions8 of 2416 of 240.646
High yield0.750Since 23 April 200835 of 9661 of 960.574
High yield0.750All 429 since 23 January 1980368 of 42961 of 4295.130
Indirect bidders' share36.7Last 24 auctions16 of 248 of 2443.3
Indirect bidders' share36.7All 96 since 23 April 200836 of 9660 of 9634.3
Direct bidders' share19.0Last 24 auctions6 of 2418 of 2415.6
Direct bidders' share19.0All 96 since 23 April 200829 of 9667 of 9614.4
Primary dealers' share44.4Last 24 auctions10 of 2414 of 2442.7
Primary dealers' share44.4All 96 since 23 April 200870 of 9626 of 9650.9
High minus median, basis points2.5Last 24 auctions14 of 2410 of 242.8
High minus median, basis points2.5Since 23 April 200846 of 9648 of 962.4
High minus median, basis points2.5All 429 since 23 January 1980149 of 429269 of 4292.0

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.

Observed .

How to cite this

U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 26 September 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160926_3.pdf. Compiled by 500metrics, "2-year note auction of 26 September 2016 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2016-09-26.

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