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Treasury auctions · 4-Year 4-Month TIPS, reopening

5-year TIPS auction of 20 December 2018 (reopening)

The 5-year TIPS sold $14 billion at a high real yield of 1.129% on , with a bid-to-cover ratio of 2.80.

Real yield at each 5-year TIPS auction

The last 36 auctions, this one last

Real yield at each 5-year TIPS auction, 9 Jul 1997 to 20 Dec 2018
Real yield at each 5-year TIPS auction, 23 Apr 2009 to 20 Dec 2018
Real yield at each 5-year TIPS auction, 22 Dec 2016 to 20 Dec 2018

Bid-to-cover ratio at each 5-year TIPS auction

The last 36 auctions, this one last

Bid-to-cover ratio at each 5-year TIPS auction, 9 Jul 1997 to 20 Dec 2018
Bid-to-cover ratio at each 5-year TIPS auction, 23 Apr 2009 to 20 Dec 2018
Bid-to-cover ratio at each 5-year TIPS auction, 22 Dec 2016 to 20 Dec 2018

Who bought the 5-year TIPS of 20 Dec 2018

Shares of the competitive bids accepted

  • Indirect bidders 80.8%
  • Direct bidders 6.7%
  • Primary dealers 12.6%
This auction, 20 Dec 2018
  • Indirect bidders 67.3%
  • Direct bidders 13.5%
  • Primary dealers 19.2%
The 5-year TIPS auction before, 23 Aug 2018

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 bidders80.8%
Inspect and compare dates
Real yield and bid-to-cover of the last 36 5-year TIPS auctions, newest first
AuctionReal yield, %Bid-to-cover
1.1292.80
0.7242.78
0.6312.55
0.3702.78
0.1172.41
-0.0492.52
0.1202.68
-0.2092.37
-0.1952.42
0.4722.38
0.3052.58
-0.3352.27
0.3952.37
-0.2812.48
-0.2132.70
-0.3752.54
-0.1272.18
-1.3112.18
-1.4962.70
-1.2863.11
-1.0802.58
-0.8773.01
-0.8252.49
-0.1802.57
-0.5502.84
0.5503.15
0.7693.10
1.2782.66
3.2701.81
0.7452.20
1.9542.44
2.1142.45
2.6912.89
2.3791.46
3.6003.56
3.744–

Observed .

Right now

The high real yield of 1.129% on 20 December 2018 was the highest for a 5-year TIPS since 23 April 2009.

The bid-to-cover ratio of 2.80 was the highest for a 5-year TIPS since 23 August 2012, with 18 auctions in between.

The indirect bidders' share of 80.8% was the highest of all 29 earlier 5-year TIPS auctions we hold.

Higher than 27 of the 29 since 22 April 2008

Its own history

Against the previous 24 5-year TIPS auctions, the real yield and the indirect bidders' share were higher than all 24.

The primary dealers' share was lower than all 24.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 80.8%
  • Direct bidders 6.7%
  • Primary dealers 12.6%

Size

Treasury sold $14 billion of the $14 billion offered.

Bids received came to $39.135 billion; the bid-to-cover ratio was 2.80.

Its bid-to-cover of 2.80 compares with the 24 auctions before it: lowest 2.18 on , highest 3.11 on ; 66.7% of the way from the low to the high.

2.80

Low 2.18 Midpoint 2.645 High 3.11

The security4-Year 4-Month, reopening

Coupon
0.625%
Announced
Issued
Matures

It adds to the debt that matures in April 2023.

Understanding this result

Where it stands today

The high real yield was 1.129% at this 5-year TIPS auction, the median real yield 1.100% and a bid-to-cover ratio of 2.80.

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
FieldValue
Offered as4-Year 4-Month, reopening
Offering amount$14,000,000,000
Bids received$39,135,330,600
Sold$14,000,017,000
Competitive bids accepted$13,970,192,400
Non-competitive bids accepted$29,824,600
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
Real yield, %1.129
Median rate, %1.100
Low rate, %1.000
Interest rate (coupon), %0.625
Bids at the high rate filled, %80.29
Bid-to-cover ratio2.80
Indirect bidders accepted$11,283,192,400
Direct bidders accepted$930,000,000
Primary dealers accepted$1,757,000,000
Indirect bidders' share, % (ours)80.8
Direct bidders' share, % (ours)6.7
Primary dealers' share, % (ours)12.6
High minus median, basis points (ours)2.9
Treasury real par yield curve, 5-year point, same day, %1.12
High yield minus that point, basis points (ours)0.9
How does it compare with earlier auctions?The previous 12 auctions, then every window
Against the previous 12 auctions of the 5-year TIPS
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.802.470 of 1212 of 12
High real yield1.1290.2120 of 1212 of 12
Indirect bidders' share80.866.40 of 1212 of 12
Direct bidders' share6.78.18 of 124 of 12
Primary dealers' share12.623.212 of 120 of 12
High minus median, basis points2.96.410 of 122 of 12

The table scrolls sideways; the first column stays in place.

The longer windows

Each measure against earlier 5-year TIPS auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
Bid-to-cover ratio2.80Last 24 auctions3 of 2421 of 242.54
Bid-to-cover ratio2.80Since 22 April 20085 of 2924 of 292.55
Bid-to-cover ratio2.80All 34 since 8 October 19977 of 3427 of 342.54
High real yield1.129Last 24 auctions0 of 2424 of 24-0.202
High real yield1.129Since 22 April 20082 of 2927 of 29-0.127
High real yield1.129All 35 since 9 July 19978 of 3527 of 350.120
Indirect bidders' share80.8Last 24 auctions0 of 2424 of 2458.7
Indirect bidders' share80.8All 29 since 22 April 20080 of 2929 of 2949.0
Direct bidders' share6.7Last 24 auctions16 of 248 of 248.1
Direct bidders' share6.7All 29 since 22 April 200818 of 2911 of 298.1
Primary dealers' share12.6Last 24 auctions24 of 240 of 2434.2
Primary dealers' share12.6All 29 since 22 April 200829 of 290 of 2940.2
High minus median, basis points2.9Last 24 auctions21 of 243 of 246.5
High minus median, basis points2.9Since 22 April 200826 of 293 of 296.5
High minus median, basis points2.9All 35 since 9 July 199729 of 355 of 356.4

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 .

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 20 December 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20181220_3.pdf. Compiled by 500metrics, "5-year TIPS auction of 20 December 2018 (reopening)", https://500metrics.com/treasury/auctions/5-year-tips/2018-12-20.

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