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Treasury auctions · 2-Year Note

2-year note auction of 27 August 2019 (new issue)

The 2-year note sold $45.194 billion at a high yield of 1.516% on , with a bid-to-cover ratio of 2.60.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 24 May 2016 to 27 Aug 2019
High yield at each 2-year note auction, 28 Aug 2017 to 27 Aug 2019

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 May 2016 to 27 Aug 2019
Bid-to-cover ratio at each 2-year note auction, 28 Aug 2017 to 27 Aug 2019

Who bought the 2-year note of 27 Aug 2019

Shares of the competitive bids accepted

  • Indirect bidders 47.1%
  • Direct bidders 20.4%
  • Primary dealers 32.5%
This auction, 27 Aug 2019
  • Indirect bidders 43.5%
  • Direct bidders 24.9%
  • Primary dealers 31.6%
The 2-year note auction before, 23 Jul 2019

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 bidders47.1%
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
1.5162.60
1.8252.50
1.6952.58
2.1252.75
2.5032.50
2.6002.56
2.6192.31
2.8362.65
2.8802.67
2.8292.44
2.6552.89
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

Observed .

Right now

The high yield of 1.516% on 27 August 2019 was the lowest for a 2-year note since 26 September 2017.

Higher than 101 of the 127 since 23 April 2008

Its own history

Against the previous 24 2-year note auctions, the direct bidders' share was higher than 20 of the 24.

The high yield was higher than 5 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 47.1%
  • Direct bidders 20.4%
  • Primary dealers 32.5%

Size

Treasury sold $45.194 billion of the $40 billion offered.

Bids received came to $109.126 billion; the bid-to-cover ratio was 2.60.

Its bid-to-cover of 2.60 compares with the 24 auctions before it: lowest 2.31 on , highest 3.22 on ; 31.9% of the way from the low to the high.

2.60

Low 2.31 Midpoint 2.765 High 3.22

The security2-Year, new issue

Coupon
1.500%
Announced
Issued
Matures

It adds to the debt that matures in August 2021.

Understanding this result

Where it stands today

The high yield was 1.516% at this 2-year note auction, the median yield 1.489% and a bid-to-cover ratio of 2.60.

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$40,000,000,000
Bids received$109,126,281,300
Sold$45,194,261,300
Competitive bids accepted$39,740,475,000
Non-competitive bids accepted$154,557,000
Federal Reserve (SOMA) add-on$5,194,229,300
Foreign and international (FIMA) non-competitive$105,000,000
High yield, %1.516
Median rate, %1.489
Low rate, %0.880
Interest rate (coupon), %1.500
Bids at the high rate filled, %9.83
Bid-to-cover ratio2.60
Indirect bidders accepted$18,734,495,000
Direct bidders accepted$8,090,000,000
Primary dealers accepted$12,915,980,000
Indirect bidders' share, % (ours)47.1
Direct bidders' share, % (ours)20.4
Primary dealers' share, % (ours)32.5
High minus median, basis points (ours)2.7
Treasury par yield curve, 2-year point, same day, %1.53
High yield minus that point, basis points (ours)-1.4
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 ratio2.602.626 of 126 of 12
High yield1.5162.61012 of 120 of 12
Indirect bidders' share47.144.93 of 129 of 12
Direct bidders' share20.417.34 of 128 of 12
Primary dealers' share32.539.78 of 124 of 12
High minus median, basis points2.72.76 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 ratio2.60Last 24 auctions17 of 247 of 242.73
Bid-to-cover ratio2.60Since 23 April 2008108 of 12719 of 1273.08
Bid-to-cover ratio2.60All 226 since 27 October 1999131 of 22695 of 2262.70
High yield1.516Last 24 auctions19 of 245 of 242.282
High yield1.516Since 23 April 200826 of 127101 of 1270.760
High yield1.516All 460 since 23 January 1980356 of 460104 of 4604.858
Indirect bidders' share47.1Last 24 auctions7 of 2417 of 2444.9
Indirect bidders' share47.1All 127 since 23 April 200823 of 127104 of 12736.7
Direct bidders' share20.4Last 24 auctions4 of 2420 of 2415.4
Direct bidders' share20.4All 127 since 23 April 200827 of 127100 of 12714.5
Primary dealers' share32.5Last 24 auctions16 of 248 of 2440.5
Primary dealers' share32.5All 127 since 23 April 2008111 of 12716 of 12747.3
High minus median, basis points2.7Last 24 auctions15 of 249 of 243.0
High minus median, basis points2.7Since 23 April 200862 of 12765 of 1272.6
High minus median, basis points2.7All 460 since 23 January 1980160 of 460297 of 4602.0

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 27 August 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20190827_1.pdf. Compiled by 500metrics, "2-year note auction of 27 August 2019 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2019-08-27.

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