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Treasury auctions · 2-Year Note

2-year note auction of 22 May 2018 (new issue)

The 2-year note sold $38.732 billion at a high yield of 2.590% on , with a bid-to-cover ratio of 2.88.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 24 Nov 2014 to 22 May 2018
High yield at each 2-year note auction, 24 May 2016 to 22 May 2018

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, 24 Nov 2014 to 22 May 2018
Bid-to-cover ratio at each 2-year note auction, 24 May 2016 to 22 May 2018

Who bought the 2-year note of 22 May 2018

Shares of the competitive bids accepted

  • Indirect bidders 39.3%
  • Direct bidders 15.3%
  • Primary dealers 45.4%
This auction, 22 May 2018
  • Indirect bidders 41.6%
  • Direct bidders 15.3%
  • Primary dealers 43.1%
The 2-year note auction before, 24 Apr 2018

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 bidders39.3%
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
2.5902.88
2.4982.61
2.3102.91
2.2552.72
2.0663.22
1.9222.52
1.7652.73
1.4622.88
1.3452.86
1.3953.06
1.3483.03
1.3162.90
1.2612.73
1.2302.82
1.2102.68
1.2802.44
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

Observed .

Right now

The high yield of 2.590% on 22 May 2018 was the highest for a 2-year note since 23 July 2008.

The indirect bidders' share of 39.3% was the lowest for a 2-year note since 27 December 2016, with 14 auctions in between.

Higher than 111 of the 114 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 19 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 39.3%
  • Direct bidders 15.3%
  • Primary dealers 45.4%

Size

Treasury sold $38.732 billion of the $33 billion offered.

Bids received came to $100.685 billion; the bid-to-cover ratio was 2.88.

Its bid-to-cover of 2.88 compares with the 24 auctions before it: lowest 2.44 on , highest 3.22 on ; 56.4% of the way from the low to the high.

2.88

Low 2.44 Midpoint 2.830 High 3.22

The security2-Year, new issue

Coupon
2.500%
Announced
Issued
Matures

It adds to the debt that matures in May 2020.

Understanding this result

Where it stands today

The high yield was 2.590% at this 2-year note auction, the median yield 2.560% and a bid-to-cover ratio of 2.88.

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$33,000,000,000
Bids received$100,684,532,100
Sold$38,732,492,100
Competitive bids accepted$32,429,810,000
Non-competitive bids accepted$420,191,900
Federal Reserve (SOMA) add-on$5,732,490,200
Foreign and international (FIMA) non-competitive$150,000,000
High yield, %2.590
Median rate, %2.560
Low rate, %2.200
Interest rate (coupon), %2.500
Bids at the high rate filled, %79.53
Bid-to-cover ratio2.88
Indirect bidders accepted$12,742,675,000
Direct bidders accepted$4,975,000,000
Primary dealers accepted$14,712,135,000
Indirect bidders' share, % (ours)39.3
Direct bidders' share, % (ours)15.3
Primary dealers' share, % (ours)45.4
High minus median, basis points (ours)3.0
Treasury par yield curve, 2-year point, same day, %2.59
High yield minus that point, basis points (ours)0.0
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 ratio2.882.875 of 126 of 12
High yield2.5901.6140 of 1212 of 12
Indirect bidders' share39.346.112 of 120 of 12
Direct bidders' share15.314.96 of 126 of 12
Primary dealers' share45.438.51 of 1211 of 12
High minus median, basis points3.04.48 of 124 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 ratio2.88Last 24 auctions6 of 2417 of 242.73
Bid-to-cover ratio2.88Since 23 April 200880 of 11433 of 1143.16
Bid-to-cover ratio2.88All 213 since 27 October 199989 of 213123 of 2132.71
High yield2.590Last 24 auctions0 of 2424 of 241.270
High yield2.590Since 23 April 20083 of 114111 of 1140.720
High yield2.590All 447 since 23 January 1980308 of 447138 of 4474.975
Indirect bidders' share39.3Last 24 auctions19 of 245 of 2446.1
Indirect bidders' share39.3All 114 since 23 April 200842 of 11472 of 11435.7
Direct bidders' share15.3Last 24 auctions10 of 2414 of 2414.5
Direct bidders' share15.3All 114 since 23 April 200848 of 11466 of 11414.4
Primary dealers' share45.4Last 24 auctions5 of 2419 of 2440.7
Primary dealers' share45.4All 114 since 23 April 200873 of 11441 of 11449.0
High minus median, basis points3.0Last 24 auctions16 of 248 of 243.8
High minus median, basis points3.0Since 23 April 200848 of 11462 of 1142.6
High minus median, basis points3.0All 447 since 23 January 1980103 of 447304 of 4472.0

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 22 May 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180522_3.pdf. Compiled by 500metrics, "2-year note auction of 22 May 2018 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2018-05-22.

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