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Treasury auctions · 2-Year Note

2-year note auction of 24 July 2018 (new issue)

The 2-year note sold $36.901 billion at a high yield of 2.657% on , with a bid-to-cover ratio of 2.92.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 28 Jan 2015 to 24 Jul 2018
High yield at each 2-year note auction, 25 Jul 2016 to 24 Jul 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, 28 Jan 2015 to 24 Jul 2018
Bid-to-cover ratio at each 2-year note auction, 25 Jul 2016 to 24 Jul 2018

Who bought the 2-year note of 24 Jul 2018

Shares of the competitive bids accepted

  • Indirect bidders 45.0%
  • Direct bidders 14.3%
  • Primary dealers 40.7%
This auction, 24 Jul 2018
  • Indirect bidders 42.3%
  • Direct bidders 15.4%
  • Primary dealers 42.3%
The 2-year note auction before, 26 Jun 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 bidders45.0%
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
2.6572.92
2.5382.73
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

Observed .

Right now

The high yield of 2.657% on 24 July 2018 was the highest for a 2-year note since 23 July 2008.

Higher than 114 of the 116 since 23 April 2008

Its own history

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

The bid-to-cover ratio was higher than 20 of them.

See every measure against earlier auctions

Who bought

Indirect bidders took the largest share of the competitive bids accepted.

  • Indirect bidders 45.0%
  • Direct bidders 14.3%
  • Primary dealers 40.7%

Size

Treasury sold $36.901 billion of the $35 billion offered.

Bids received came to $104.146 billion; the bid-to-cover ratio was 2.92.

Its bid-to-cover of 2.92 compares with the 24 auctions before it: lowest 2.44 on , highest 3.22 on ; 61.5% of the way from the low to the high.

2.92

Low 2.44 Midpoint 2.830 High 3.22

The security2-Year, new issue

Coupon
2.625%
Announced
Issued
Matures

It adds to the debt that matures in July 2020.

Understanding this result

Where it stands today

The high yield was 2.657% at this 2-year note auction, the median yield 2.610% and a bid-to-cover ratio of 2.92.

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$35,000,000,000
Bids received$104,146,278,700
Sold$36,900,694,700
Competitive bids accepted$34,462,311,000
Non-competitive bids accepted$437,836,600
Federal Reserve (SOMA) add-on$1,900,547,100
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %2.657
Median rate, %2.610
Low rate, %2.188
Interest rate (coupon), %2.625
Bids at the high rate filled, %19.42
Bid-to-cover ratio2.92
Indirect bidders accepted$15,517,395,000
Direct bidders accepted$4,923,000,000
Primary dealers accepted$14,021,916,000
Indirect bidders' share, % (ours)45.0
Direct bidders' share, % (ours)14.3
Primary dealers' share, % (ours)40.7
High minus median, basis points (ours)4.7
Treasury par yield curve, 2-year point, same day, %2.63
High yield minus that point, basis points (ours)2.7
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 ratio2.922.873 of 129 of 12
High yield2.6571.9940 of 1212 of 12
Indirect bidders' share45.044.35 of 127 of 12
Direct bidders' share14.315.49 of 123 of 12
Primary dealers' share40.741.27 of 125 of 12
High minus median, basis points4.73.62 of 1210 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 ratio2.92Last 24 auctions4 of 2420 of 242.73
Bid-to-cover ratio2.92Since 23 April 200876 of 11640 of 1163.14
Bid-to-cover ratio2.92All 215 since 27 October 199984 of 215131 of 2152.72
High yield2.657Last 24 auctions0 of 2424 of 241.330
High yield2.657Since 23 April 20082 of 116114 of 1160.739
High yield2.657All 449 since 23 January 1980306 of 449143 of 4494.933
Indirect bidders' share45.0Last 24 auctions12 of 2412 of 2445.2
Indirect bidders' share45.0All 116 since 23 April 200827 of 11689 of 11635.8
Direct bidders' share14.3Last 24 auctions13 of 2411 of 2414.9
Direct bidders' share14.3All 116 since 23 April 200860 of 11656 of 11614.4
Primary dealers' share40.7Last 24 auctions14 of 2410 of 2441.5
Primary dealers' share40.7All 116 since 23 April 200890 of 11626 of 11648.7
High minus median, basis points4.7Last 24 auctions6 of 2418 of 243.6
High minus median, basis points4.7Since 23 April 200818 of 11697 of 1162.6
High minus median, basis points4.7All 449 since 23 January 198044 of 449404 of 4492.0

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 24 July 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180724_2.pdf. Compiled by 500metrics, "2-year note auction of 24 July 2018 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2018-07-24.

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