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Treasury auctions · 2-Year Note

2-year note auction of 21 November 2016 (new issue)

The 2-year note sold $28.767 billion at a high yield of 1.085% on , with a bid-to-cover ratio of 2.73.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 23 Jul 2013 to 21 Nov 2016
High yield at each 2-year note auction, 24 Nov 2014 to 21 Nov 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, 23 Jul 2013 to 21 Nov 2016
Bid-to-cover ratio at each 2-year note auction, 24 Nov 2014 to 21 Nov 2016

Who bought the 2-year note of 21 Nov 2016

Shares of the competitive bids accepted

  • Indirect bidders 35.8%
  • Direct bidders 13.4%
  • Primary dealers 50.8%
This auction, 21 Nov 2016
  • Indirect bidders 33.7%
  • Direct bidders 10.1%
  • Primary dealers 56.2%
The 2-year note auction before, 25 Oct 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 bidders35.8%
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
1.0852.73
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

Observed .

Right now

The high yield of 1.085% on 21 November 2016 was the highest for a 2-year note since 28 December 2009.

Higher than 87 of the 98 since 23 April 2008

Its own history

Against the previous 24 2-year note auctions, the high yield was higher than all 24.

The primary dealers' share was higher than 20 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 35.8%
  • Direct bidders 13.4%
  • Primary dealers 50.8%

Size

Treasury sold $28.767 billion of the $26 billion offered.

Bids received came to $73.811 billion; the bid-to-cover ratio was 2.73.

Its bid-to-cover of 2.73 compares with the 24 auctions before it: lowest 2.52 on , highest 3.74 on ; 17.2% of the way from the low to the high.

2.73

Low 2.52 Midpoint 3.130 High 3.74

The security2-Year, new issue

Coupon
1.000%
Announced
Issued
Matures

It adds to the debt that matures in November 2018.

Understanding this result

Where it stands today

The high yield was 1.085% at this 2-year note auction, the median yield 1.050% and a bid-to-cover ratio of 2.73.

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$73,811,483,400
Sold$28,767,455,900
Competitive bids accepted$25,845,402,500
Non-competitive bids accepted$154,824,700
Federal Reserve (SOMA) add-on$2,767,228,700
Foreign and international (FIMA) non-competitive$0
High yield, %1.085
Median rate, %1.050
Low rate, %0.888
Interest rate (coupon), %1.000
Bids at the high rate filled, %44.73
Bid-to-cover ratio2.73
Indirect bidders accepted$9,252,212,500
Direct bidders accepted$3,471,600,000
Primary dealers accepted$13,121,590,000
Indirect bidders' share, % (ours)35.8
Direct bidders' share, % (ours)13.4
Primary dealers' share, % (ours)50.8
High minus median, basis points (ours)3.5
Treasury par yield curve, 2-year point, same day, %1.08
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 ratio2.732.766 of 126 of 12
High yield1.0850.8480 of 1212 of 12
Indirect bidders' share35.846.510 of 122 of 12
Direct bidders' share13.416.58 of 124 of 12
Primary dealers' share50.836.42 of 1210 of 12
High minus median, basis points3.53.56 of 126 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 ratio2.73Last 24 auctions18 of 246 of 243.18
Bid-to-cover ratio2.73Since 23 April 200878 of 9820 of 983.22
Bid-to-cover ratio2.73All 197 since 27 October 199992 of 197105 of 1972.69
High yield1.085Last 24 auctions0 of 2424 of 240.698
High yield1.085Since 23 April 200811 of 9887 of 980.594
High yield1.085All 431 since 23 January 1980344 of 43187 of 4315.125
Indirect bidders' share35.8Last 24 auctions19 of 245 of 2443.3
Indirect bidders' share35.8All 98 since 23 April 200842 of 9856 of 9834.3
Direct bidders' share13.4Last 24 auctions16 of 248 of 2414.9
Direct bidders' share13.4All 98 since 23 April 200853 of 9845 of 9814.4
Primary dealers' share50.8Last 24 auctions4 of 2420 of 2442.7
Primary dealers' share50.8All 98 since 23 April 200850 of 9848 of 9850.9
High minus median, basis points3.5Last 24 auctions7 of 2416 of 242.8
High minus median, basis points3.5Since 23 April 200828 of 9868 of 982.5
High minus median, basis points3.5All 431 since 23 January 198078 of 431347 of 4312.0

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 21 November 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20161121_3.pdf. Compiled by 500metrics, "2-year note auction of 21 November 2016 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2016-11-21.

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