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Treasury auctions · 2-Year Note

2-year note auction of 23 May 2023 (new issue)

The 2-year note sold $49.888 billion at a high yield of 4.300% on , with a bid-to-cover ratio of 2.90.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 23 Jun 2020 to 23 May 2023
High yield at each 2-year note auction, 25 May 2021 to 23 May 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, 23 Jun 2020 to 23 May 2023
Bid-to-cover ratio at each 2-year note auction, 25 May 2021 to 23 May 2023

Who bought the 2-year note of 23 May 2023

Shares of the competitive bids accepted

  • Indirect bidders 68.2%
  • Direct bidders 15.6%
  • Primary dealers 16.2%
This auction, 23 May 2023
  • Indirect bidders 61.2%
  • Direct bidders 19.9%
  • Primary dealers 18.9%
The 2-year note auction before, 25 Apr 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 bidders68.2%
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
4.3002.90
3.9692.68
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

Observed .

Right now

The high yield was 4.300% on 23 May 2023, up from 3.969% at the auction before.

The indirect bidders' share of 68.2% was the highest for a 2-year note since 23 June 2009, with 157 auctions in between.

The direct bidders' share of 15.6% was the lowest for a 2-year note since 24 January 2022, with 15 auctions in between.

Higher than 168 of the 172 since 23 April 2008

Its own history

Against the previous 24 2-year note auctions, the indirect bidders' share was higher than all 24.

The bid-to-cover ratio was higher than 23 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 68.2%
  • Direct bidders 15.6%
  • Primary dealers 16.2%

Size

Treasury sold $49.888 billion of the $42 billion offered.

Bids received came to $129.665 billion; the bid-to-cover ratio was 2.90.

Its bid-to-cover of 2.90 compares with the 24 auctions before it: lowest 2.28 on , highest 2.94 on ; 93.9% of the way from the low to the high.

2.90

Low 2.28 Midpoint 2.610 High 2.94

The security2-Year, new issue

Coupon
4.250%
Announced
Issued
Matures

It adds to the debt that matures in May 2025.

Understanding this result

Where it stands today

The high yield was 4.300% at this 2-year note auction, the median yield 4.255% and a bid-to-cover ratio of 2.90.

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$129,665,477,300
Sold$49,887,600,600
Competitive bids accepted$41,665,843,300
Non-competitive bids accepted$323,572,200
Federal Reserve (SOMA) add-on$7,887,485,100
Foreign and international (FIMA) non-competitive$10,700,000
High yield, %4.300
Median rate, %4.255
Low rate, %4.150
Interest rate (coupon), %4.250
Bids at the high rate filled, %6.83
Bid-to-cover ratio2.90
Indirect bidders accepted$28,420,515,800
Direct bidders accepted$6,501,373,500
Primary dealers accepted$6,743,954,000
Indirect bidders' share, % (ours)68.2
Direct bidders' share, % (ours)15.6
Primary dealers' share, % (ours)16.2
High minus median, basis points (ours)4.5
Treasury par yield curve, 2-year point, same day, %4.26
High yield minus that point, basis points (ours)4.0
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 ratio2.902.601 of 1211 of 12
High yield4.3004.0544 of 128 of 12
Indirect bidders' share68.260.50 of 1212 of 12
Direct bidders' share15.622.212 of 120 of 12
Primary dealers' share16.219.810 of 122 of 12
High minus median, basis points4.56.410 of 121 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 ratio2.90Last 24 auctions1 of 2423 of 242.60
Bid-to-cover ratio2.90Since 23 April 200881 of 17289 of 1722.87
Bid-to-cover ratio2.90All 271 since 27 October 199990 of 271179 of 2712.65
High yield4.300Last 24 auctions4 of 2420 of 242.552
High yield4.300Since 23 April 20084 of 172168 of 1720.769
High yield4.300All 505 since 23 January 1980259 of 505245 of 5054.404
Indirect bidders' share68.2Last 24 auctions0 of 2424 of 2458.9
Indirect bidders' share68.2All 172 since 23 April 20081 of 172171 of 17242.7
Direct bidders' share15.6Last 24 auctions22 of 242 of 2421.2
Direct bidders' share15.6All 172 since 23 April 200887 of 17285 of 17215.7
Primary dealers' share16.2Last 24 auctions20 of 244 of 2421.4
Primary dealers' share16.2All 172 since 23 April 2008168 of 1724 of 17242.7
High minus median, basis points4.5Last 24 auctions13 of 2410 of 244.8
High minus median, basis points4.5Since 23 April 200834 of 172134 of 1723.0
High minus median, basis points4.5All 505 since 23 January 198060 of 505438 of 5052.2

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 23 May 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230523_2.pdf. Compiled by 500metrics, "2-year note auction of 23 May 2023 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2023-05-23.

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