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Treasury auctions · 2-Year Note

2-year note auction of 25 October 2016 (new issue)

The 2-year note sold $27.572 billion at a high yield of 0.855% on , with a bid-to-cover ratio of 2.53.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 25 Jun 2013 to 25 Oct 2016
High yield at each 2-year note auction, 28 Oct 2014 to 25 Oct 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, 25 Jun 2013 to 25 Oct 2016
Bid-to-cover ratio at each 2-year note auction, 28 Oct 2014 to 25 Oct 2016

Who bought the 2-year note of 25 Oct 2016

Shares of the competitive bids accepted

  • Indirect bidders 33.7%
  • Direct bidders 10.1%
  • Primary dealers 56.2%
This auction, 25 Oct 2016
  • Indirect bidders 36.7%
  • Direct bidders 19.0%
  • Primary dealers 44.4%
The 2-year note auction before, 26 Sep 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 bidders33.7%
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
0.8552.53
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

Observed .

Right now

The high yield was 0.855% on 25 October 2016, up from 0.750% at the auction before.

Higher than 68 of the 97 since 23 April 2008

Its own history

Against the previous 24 2-year note auctions, the primary dealers' share was higher than 22 of the 24.

The bid-to-cover ratio was higher than 1 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 33.7%
  • Direct bidders 10.1%
  • Primary dealers 56.2%

Size

Treasury sold $27.572 billion of the $26 billion offered.

Bids received came to $67.432 billion; the bid-to-cover ratio was 2.53.

Its bid-to-cover of 2.53 compares with the 24 auctions before it: lowest 2.52 on , highest 3.74 on ; 0.8% of the way from the low to the high.

2.53

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 October 2018.

Understanding this result

Where it stands today

The high yield was 0.855% at this 2-year note auction, the median yield 0.829% and a bid-to-cover ratio of 2.53.

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$67,432,373,800
Sold$27,571,869,400
Competitive bids accepted$25,816,184,600
Non-competitive bids accepted$183,887,800
Federal Reserve (SOMA) add-on$1,571,797,000
Foreign and international (FIMA) non-competitive$0
High yield, %0.855
Median rate, %0.829
Low rate, %0.750
Interest rate (coupon), %0.750
Bids at the high rate filled, %28.78
Bid-to-cover ratio2.53
Indirect bidders accepted$8,705,615,000
Direct bidders accepted$2,602,780,000
Primary dealers accepted$14,507,789,600
Indirect bidders' share, % (ours)33.7
Direct bidders' share, % (ours)10.1
Primary dealers' share, % (ours)56.2
High minus median, basis points (ours)2.6
Treasury par yield curve, 2-year point, same day, %0.86
High yield minus that point, basis points (ours)-0.5
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 ratio2.532.8211 of 121 of 12
High yield0.8550.8015 of 127 of 12
Indirect bidders' share33.747.211 of 121 of 12
Direct bidders' share10.116.511 of 121 of 12
Primary dealers' share56.236.31 of 1211 of 12
High minus median, basis points2.63.59 of 122 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 ratio2.53Last 24 auctions23 of 241 of 243.22
Bid-to-cover ratio2.53Since 23 April 200888 of 979 of 973.23
Bid-to-cover ratio2.53All 196 since 27 October 1999116 of 19679 of 1962.69
High yield0.855Last 24 auctions5 of 2419 of 240.691
High yield0.855Since 23 April 200829 of 9768 of 970.589
High yield0.855All 430 since 23 January 1980362 of 43068 of 4305.128
Indirect bidders' share33.7Last 24 auctions20 of 244 of 2443.3
Indirect bidders' share33.7All 97 since 23 April 200850 of 9747 of 9734.3
Direct bidders' share10.1Last 24 auctions22 of 242 of 2415.6
Direct bidders' share10.1All 97 since 23 April 200867 of 9730 of 9714.4
Primary dealers' share56.2Last 24 auctions2 of 2422 of 2442.7
Primary dealers' share56.2All 97 since 23 April 200831 of 9766 of 9750.8
High minus median, basis points2.6Last 24 auctions12 of 2410 of 242.8
High minus median, basis points2.6Since 23 April 200842 of 9751 of 972.5
High minus median, basis points2.6All 430 since 23 January 1980143 of 430281 of 4302.0

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 25 October 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20161025_2.pdf. Compiled by 500metrics, "2-year note auction of 25 October 2016 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2016-10-25.

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