Treasury auctions · 4-Year 4-Month TIPS, reopening
5-year TIPS auction of 18 December 2014 (reopening)
The 5-year TIPS sold $16 billion at a high real yield of 0.395% on , with a bid-to-cover ratio of 2.37.
Real yield at each 5-year TIPS auction
Bid-to-cover ratio at each 5-year TIPS auction
Who bought the 5-year TIPS of 18 Dec 2014
- Indirect bidders 64.8%
- Direct bidders 5.2%
- Primary dealers 30.0%
- Indirect bidders 56.3%
- Direct bidders 3.5%
- Primary dealers 40.2%
Each point is one 5-year TIPS auction, this one last; pointing at the chart shows its date and figures.
Select a line to followLatest:
- Indirect bidders64.8%
Inspect and compare dates
| Auction | Real yield, % | Bid-to-cover |
|---|---|---|
| 0.395 | 2.37 | |
| -0.281 | 2.48 | |
| -0.213 | 2.70 | |
| -0.375 | 2.54 | |
| -0.127 | 2.18 | |
| -1.311 | 2.18 | |
| -1.496 | 2.70 | |
| -1.286 | 3.11 | |
| -1.080 | 2.58 | |
| -0.877 | 3.01 | |
| -0.825 | 2.49 | |
| -0.180 | 2.57 | |
| -0.550 | 2.84 | |
| 0.550 | 3.15 | |
| 0.769 | 3.10 | |
| 1.278 | 2.66 | |
| 3.270 | 1.81 | |
| 0.745 | 2.20 | |
| 1.954 | 2.44 | |
| 2.114 | 2.45 | |
| 2.691 | 2.89 | |
| 2.379 | 1.46 | |
| 3.600 | 3.56 | |
| 3.744 | – |
Observed .
Right now
The high real yield of 0.395% on 18 December 2014 was the highest for a 5-year TIPS since 26 April 2010.
The indirect bidders' share of 64.8% was the highest of all 17 earlier 5-year TIPS auctions we hold.
The primary dealers' share of 30.0% was the lowest of all 17 earlier 5-year TIPS auctions we hold.
Its own history
Against the previous 12 5-year TIPS auctions, the real yield and the indirect bidders' share were higher than all 12.
The primary dealers' share was lower than all 12.
Who bought
Indirect bidders took the largest share of the competitive bids accepted.
- Indirect bidders 64.8%
- Direct bidders 5.2%
- Primary dealers 30.0%
Size
Treasury sold $16 billion of the $16 billion offered.
Bids received came to $37.987 billion; the bid-to-cover ratio was 2.37.
Its bid-to-cover of 2.37 compares with the 12 auctions before it: lowest 2.18 on , highest 3.11 on ; 20.4% of the way from the low to the high.
Low 2.18 Midpoint 2.645 High 3.11
The security4-Year 4-Month, reopening
- Coupon
- 0.125%
- Announced
- Issued
- Matures
It adds to the debt that matures in April 2019.
Understanding this result
Where it stands today
The high real yield was 0.395% at this 5-year TIPS auction, the median real yield 0.330% and a bid-to-cover ratio of 2.37.
What do these figures measure?
The high real 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 real par yield curve comparison sets the high yield against Treasury's own real par yield curve on the auction day, at the point nearest this security's maturity (5-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
| Field | Value |
|---|---|
| Offered as | 4-Year 4-Month, reopening |
| Offering amount | $16,000,000,000 |
| Bids received | $37,987,132,500 |
| Sold | $16,000,002,500 |
| Competitive bids accepted | $15,964,900,000 |
| Non-competitive bids accepted | $35,102,500 |
| Federal Reserve (SOMA) add-on | $0 |
| Foreign and international (FIMA) non-competitive | $0 |
| Real yield, % | 0.395 |
| Median rate, % | 0.330 |
| Low rate, % | 0.200 |
| Interest rate (coupon), % | 0.125 |
| Bids at the high rate filled, % | 10.56 |
| Bid-to-cover ratio | 2.37 |
| Indirect bidders accepted | $10,346,260,000 |
| Direct bidders accepted | $830,000,000 |
| Primary dealers accepted | $4,788,640,000 |
| Indirect bidders' share, % (ours) | 64.8 |
| Direct bidders' share, % (ours) | 5.2 |
| Primary dealers' share, % (ours) | 30.0 |
| High minus median, basis points (ours) | 6.5 |
| Treasury real par yield curve, 5-year point, same day, % | 0.48 |
| High yield minus that point, basis points (ours) | -8.5 |
How does it compare with earlier auctions?The previous 12 auctions, then every window
| Measure | This auction | Median | Higher | Lower |
|---|---|---|---|---|
| Bid-to-cover ratio | 2.37 | 2.58 | 10 of 12 | 2 of 12 |
| High real yield | 0.395 | -0.688 | 0 of 12 | 12 of 12 |
| Indirect bidders' share | 64.8 | 45.3 | 0 of 12 | 12 of 12 |
| Direct bidders' share | 5.2 | 8.6 | 9 of 12 | 3 of 12 |
| Primary dealers' share | 30.0 | 43.9 | 12 of 12 | 0 of 12 |
| High minus median, basis points | 6.5 | 7.3 | 7 of 12 | 5 of 12 |
The table scrolls sideways; the first column stays in place.
The longer windows
| Measure | This auction | Window | Higher | Lower | Median |
|---|---|---|---|---|---|
| Bid-to-cover ratio | 2.37 | Since 22 April 2008 | 13 of 17 | 4 of 17 | 2.58 |
| Bid-to-cover ratio | 2.37 | All 22 since 8 October 1997 | 17 of 22 | 5 of 22 | 2.58 |
| High real yield | 0.395 | Since 22 April 2008 | 5 of 17 | 12 of 17 | -0.281 |
| High real yield | 0.395 | All 23 since 9 July 1997 | 11 of 23 | 12 of 23 | -0.127 |
| Indirect bidders' share | 64.8 | All 17 since 22 April 2008 | 0 of 17 | 17 of 17 | 39.5 |
| Direct bidders' share | 5.2 | All 17 since 22 April 2008 | 11 of 17 | 6 of 17 | 8.1 |
| Primary dealers' share | 30.0 | All 17 since 22 April 2008 | 17 of 17 | 0 of 17 | 51.7 |
| High minus median, basis points | 6.5 | Since 22 April 2008 | 10 of 17 | 7 of 17 | 8.0 |
| High minus median, basis points | 6.5 | All 23 since 9 July 1997 | 11 of 23 | 12 of 23 | 5.4 |
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 .
Observed .
How to cite this
U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 18 December 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20141218_1.pdf. Compiled by 500metrics, "5-year TIPS auction of 18 December 2014 (reopening)", https://500metrics.com/treasury/auctions/5-year-tips/2014-12-18.
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