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Treasury auctions · 2-Year Note

2-year note auction of 27 March 2023 (new issue)

The 2-year note sold $42 billion at a high yield of 3.954% on , with a bid-to-cover ratio of 2.44.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 27 Apr 2020 to 27 Mar 2023
High yield at each 2-year note auction, 26 Apr 2021 to 27 Mar 2023

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, 27 Apr 2020 to 27 Mar 2023
Bid-to-cover ratio at each 2-year note auction, 26 Apr 2021 to 27 Mar 2023

Who bought the 2-year note of 27 Mar 2023

Shares of the competitive bids accepted

  • Indirect bidders 52.8%
  • Direct bidders 24.2%
  • Primary dealers 23.0%
This auction, 27 Mar 2023
  • Indirect bidders 62.0%
  • Direct bidders 23.0%
  • Primary dealers 15.0%
The 2-year note auction before, 21 Feb 2023

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 bidders52.8%
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
3.9542.44
4.6732.61
4.1392.94
4.3732.71
4.5052.64
4.4602.59
4.2902.51
3.3072.49
3.0152.58
3.0842.51
2.5192.61
2.5852.74
2.3652.46
1.5532.64
0.9902.81
0.7692.55
0.6232.36
0.4812.69
0.3102.28
0.2422.65
0.2132.47
0.2492.54
0.1522.74
0.1752.34
0.1522.54
0.1192.44
0.1252.67
0.1372.45
0.1652.71
0.1512.41
0.1362.42
0.1552.78
0.1552.34
0.1932.46
0.1782.68
0.2293.10

Observed .

Right now

The high yield of 3.954% on 27 March 2023 was the lowest for a 2-year note since 23 August 2022.

The bid-to-cover ratio of 2.44 was the lowest for a 2-year note since 22 November 2021, with 15 auctions in between.

Higher than 164 of the 170 since 23 April 2008

Its own history

Against the previous 24 2-year note auctions, the high minus median was higher than 23 of the 24.

The bid-to-cover ratio was higher than 3 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 52.8%
  • Direct bidders 24.2%
  • Primary dealers 23.0%

Size

Treasury sold $42 billion of the $42 billion offered.

Bids received came to $102.407 billion; the bid-to-cover ratio was 2.44.

Its bid-to-cover of 2.44 compares with the 24 auctions before it: lowest 2.28 on , highest 2.94 on ; 24.2% of the way from the low to the high.

2.44

Low 2.28 Midpoint 2.610 High 2.94

The security2-Year, new issue

Coupon
3.875%
Announced
Issued
Matures

It adds to the debt that matures in March 2025.

Understanding this result

Where it stands today

The high yield was 3.954% at this 2-year note auction, the median yield 3.870% and a bid-to-cover ratio of 2.44.

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$42,000,000,000
Bids received$102,406,568,600
Sold$42,000,018,600
Competitive bids accepted$41,437,725,000
Non-competitive bids accepted$462,293,600
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %3.954
Median rate, %3.870
Low rate, %3.800
Interest rate (coupon), %3.875
Bids at the high rate filled, %13.09
Bid-to-cover ratio2.44
Indirect bidders accepted$21,879,275,000
Direct bidders accepted$10,015,000,000
Primary dealers accepted$9,543,450,000
Indirect bidders' share, % (ours)52.8
Direct bidders' share, % (ours)24.2
Primary dealers' share, % (ours)23.0
High minus median, basis points (ours)8.4
Treasury par yield curve, 2-year point, same day, %3.94
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 ratio2.442.6012 of 120 of 12
High yield3.9543.7236 of 126 of 12
Indirect bidders' share52.860.910 of 122 of 12
Direct bidders' share24.222.24 of 128 of 12
Primary dealers' share23.019.22 of 1210 of 12
High minus median, basis points8.46.40 of 1211 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 ratio2.44Last 24 auctions21 of 243 of 242.58
Bid-to-cover ratio2.44Since 23 April 2008151 of 17016 of 1702.88
Bid-to-cover ratio2.44All 269 since 27 October 1999184 of 26981 of 2692.65
High yield3.954Last 24 auctions6 of 2418 of 241.959
High yield3.954Since 23 April 20086 of 170164 of 1700.764
High yield3.954All 503 since 23 January 1980280 of 503223 of 5034.427
Indirect bidders' share52.8Last 24 auctions16 of 248 of 2457.6
Indirect bidders' share52.8All 170 since 23 April 200836 of 170134 of 17042.3
Direct bidders' share24.2Last 24 auctions4 of 2420 of 2420.6
Direct bidders' share24.2All 170 since 23 April 200822 of 170148 of 17015.6
Primary dealers' share23.0Last 24 auctions11 of 2413 of 2422.6
Primary dealers' share23.0All 170 since 23 April 2008156 of 17014 of 17042.9
High minus median, basis points8.4Last 24 auctions0 of 2423 of 244.4
High minus median, basis points8.4Since 23 April 20081 of 170167 of 1703.0
High minus median, basis points8.4All 503 since 23 January 19803 of 503498 of 5032.1

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 March 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230327_3.pdf. Compiled by 500metrics, "2-year note auction of 27 March 2023 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2023-03-27.

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