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Treasury auctions · 2-Year Note

2-year note auction of 26 September 2023 (new issue)

The 2-year note sold $48 billion at a high yield of 5.085% on , with a bid-to-cover ratio of 2.73.

High yield at each 2-year note auction

The last 36 auctions, this one last

High yield at each 2-year note auction, 27 Oct 2020 to 26 Sep 2023
High yield at each 2-year note auction, 27 Sep 2021 to 26 Sep 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 Oct 2020 to 26 Sep 2023
Bid-to-cover ratio at each 2-year note auction, 27 Sep 2021 to 26 Sep 2023

Who bought the 2-year note of 26 Sep 2023

Shares of the competitive bids accepted

  • Indirect bidders 65.0%
  • Direct bidders 21.0%
  • Primary dealers 14.0%
This auction, 26 Sep 2023
  • Indirect bidders 65.0%
  • Direct bidders 20.0%
  • Primary dealers 15.0%
The 2-year note auction before, 28 Aug 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 bidders65.0%
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
5.0852.73
5.0242.94
4.8232.78
4.6702.86
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

Observed .

Right now

The high yield of 5.085% on 26 September 2023 was the highest for a 2-year note since 26 July 2006.

Higher than all 176 since 23 April 2008

Its own history

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

The indirect bidders' share was higher than 18 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 65.0%
  • Direct bidders 21.0%
  • Primary dealers 14.0%

Size

Treasury sold $48 billion of the $48 billion offered.

Bids received came to $130.923 billion; the bid-to-cover ratio was 2.73.

Its bid-to-cover of 2.73 compares with the 24 auctions before it: lowest 2.28 on , highest 2.94 on ; 68.2% of the way from the low to the high.

2.73

Low 2.28 Midpoint 2.610 High 2.94

The security2-Year, new issue

Coupon
5.000%
Announced
Issued
Matures

It adds to the debt that matures in September 2025.

Understanding this result

Where it stands today

The high yield was 5.085% at this 2-year note auction, the median yield 5.030% and a bid-to-cover ratio of 2.73.

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$48,000,000,000
Bids received$130,923,315,800
Sold$48,000,137,800
Competitive bids accepted$47,170,608,500
Non-competitive bids accepted$829,529,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %5.085
Median rate, %5.030
Low rate, %4.950
Interest rate (coupon), %5.000
Bids at the high rate filled, %60.59
Bid-to-cover ratio2.73
Indirect bidders accepted$30,669,684,000
Direct bidders accepted$9,903,340,000
Primary dealers accepted$6,597,584,500
Indirect bidders' share, % (ours)65.0
Direct bidders' share, % (ours)21.0
Primary dealers' share, % (ours)14.0
High minus median, basis points (ours)5.5
Treasury par yield curve, 2-year point, same day, %5.04
High yield minus that point, basis points (ours)4.5
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 ratio2.732.705 of 127 of 12
High yield5.0854.4160 of 1212 of 12
Indirect bidders' share65.062.13 of 129 of 12
Direct bidders' share21.020.45 of 127 of 12
Primary dealers' share14.017.610 of 122 of 12
High minus median, basis points5.55.26 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 ratio2.73Last 24 auctions7 of 2417 of 242.62
Bid-to-cover ratio2.73Since 23 April 2008100 of 17672 of 1762.87
Bid-to-cover ratio2.73All 275 since 27 October 1999114 of 275157 of 2752.67
High yield5.085Last 24 auctions0 of 2424 of 243.630
High yield5.085Since 23 April 20080 of 176176 of 1760.796
High yield5.085All 509 since 23 January 1980218 of 509291 of 5094.427
Indirect bidders' share65.0Last 24 auctions6 of 2418 of 2461.7
Indirect bidders' share65.0All 176 since 23 April 20087 of 176169 of 17643.5
Direct bidders' share21.0Last 24 auctions11 of 2413 of 2420.4
Direct bidders' share21.0All 176 since 23 April 200842 of 176134 of 17615.8
Primary dealers' share14.0Last 24 auctions21 of 243 of 2419.2
Primary dealers' share14.0All 176 since 23 April 2008173 of 1763 of 17642.4
High minus median, basis points5.5Last 24 auctions11 of 2413 of 245.0
High minus median, basis points5.5Since 23 April 200820 of 176155 of 1763.1
High minus median, basis points5.5All 509 since 23 January 198031 of 509477 of 5092.2

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 26 September 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230926_2.pdf. Compiled by 500metrics, "2-year note auction of 26 September 2023 (new issue)", https://500metrics.com/treasury/auctions/2-year-note/2023-09-26.

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