Treasury auctions · 4-Year 10-Month TIPS, reopening
5-year TIPS auction of 22 December 2020 (reopening)
The 5-year TIPS sold $17.282 billion at a high real yield of -1.575% on , with a bid-to-cover ratio of 2.86.
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 22 Dec 2020
- Indirect bidders 64.2%
- Direct bidders 8.7%
- Primary dealers 27.1%
- Indirect bidders 62.8%
- Direct bidders 20.5%
- Primary dealers 16.7%
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 bidders64.2%
Inspect and compare dates
| Auction | Real yield, % | Bid-to-cover |
|---|---|---|
| -1.575 | 2.86 | |
| -1.320 | 2.66 | |
| -0.951 | 6.31 | |
| -0.766 | 2.78 | |
| -0.320 | 2.74 | |
| 0.020 | 2.69 | |
| 0.054 | 2.75 | |
| 0.152 | 2.55 | |
| 0.515 | 2.50 | |
| 1.129 | 2.80 | |
| 0.724 | 2.78 | |
| 0.631 | 2.55 | |
| 0.370 | 2.78 | |
| 0.117 | 2.41 | |
| -0.049 | 2.52 | |
| 0.120 | 2.68 | |
| -0.209 | 2.37 | |
| -0.195 | 2.42 | |
| 0.472 | 2.38 | |
| 0.305 | 2.58 | |
| -0.335 | 2.27 | |
| 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 |
Observed .
Right now
The high real yield of -1.575% on 22 December 2020 was the lowest of all 44 earlier 5-year TIPS auctions we hold.
Its own history
Against the previous 24 5-year TIPS auctions, the real yield was lower than all 24.
The bid-to-cover ratio was higher than 23 of them.
Who bought
Indirect bidders took the largest share of the competitive bids accepted.
- Indirect bidders 64.2%
- Direct bidders 8.7%
- Primary dealers 27.1%
Size
Treasury sold $17.282 billion of the $15 billion offered.
Bids received came to $45.223 billion; the bid-to-cover ratio was 2.86.
Its bid-to-cover of 2.86 compares with the 24 auctions before it: lowest 2.27 on , highest 6.31 on ; 14.6% of the way from the low to the high.
Low 2.27 Midpoint 4.290 High 6.31
The security4-Year 10-Month, reopening
- Coupon
- 0.125%
- Announced
- Issued
- Matures
It adds to the debt that matures in October 2025.
Understanding this result
Where it stands today
The high real yield was -1.575% at this 5-year TIPS auction, the median real yield -1.620% and a bid-to-cover ratio of 2.86.
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.
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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 10-Month, reopening |
| Offering amount | $15,000,000,000 |
| Bids received | $45,223,260,800 |
| Sold | $17,282,300,500 |
| Competitive bids accepted | $14,981,191,200 |
| Non-competitive bids accepted | $18,946,600 |
| Federal Reserve (SOMA) add-on | $2,282,162,700 |
| Foreign and international (FIMA) non-competitive | $0 |
| Real yield, % | -1.575 |
| Median rate, % | -1.620 |
| Low rate, % | -2.000 |
| Interest rate (coupon), % | 0.125 |
| Bids at the high rate filled, % | 29.03 |
| Bid-to-cover ratio | 2.86 |
| Indirect bidders accepted | $9,617,911,500 |
| Direct bidders accepted | $1,301,279,700 |
| Primary dealers accepted | $4,062,000,000 |
| Indirect bidders' share, % (ours) | 64.2 |
| Direct bidders' share, % (ours) | 8.7 |
| Primary dealers' share, % (ours) | 27.1 |
| High minus median, basis points (ours) | 4.5 |
| Treasury real par yield curve, 5-year point, same day, % | -1.55 |
| High yield minus that point, basis points (ours) | -2.5 |
How does it compare with earlier auctions?The previous 12 auctions, then every window
| Measure | This auction | Median | Higher | Lower |
|---|---|---|---|---|
| Bid-to-cover ratio | 2.86 | 2.74 | 1 of 12 | 11 of 12 |
| High real yield | -1.575 | 0.103 | 12 of 12 | 0 of 12 |
| Indirect bidders' share | 64.2 | 69.1 | 8 of 12 | 4 of 12 |
| Direct bidders' share | 8.7 | 12.9 | 9 of 12 | 3 of 12 |
| Primary dealers' share | 27.1 | 15.5 | 1 of 12 | 11 of 12 |
| High minus median, basis points | 4.5 | 4.2 | 4 of 12 | 7 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 | 2.86 | Last 24 auctions | 1 of 24 | 23 of 24 | 2.56 |
| Bid-to-cover ratio | 2.86 | Since 22 April 2008 | 5 of 38 | 33 of 38 | 2.58 |
| Bid-to-cover ratio | 2.86 | All 43 since 8 October 1997 | 7 of 43 | 36 of 43 | 2.58 |
| High real yield | -1.575 | Last 24 auctions | 24 of 24 | 0 of 24 | 0.037 |
| High real yield | -1.575 | Since 22 April 2008 | 38 of 38 | 0 of 38 | -0.088 |
| High real yield | -1.575 | All 44 since 9 July 1997 | 44 of 44 | 0 of 44 | 0.086 |
| Indirect bidders' share | 64.2 | Last 24 auctions | 14 of 24 | 10 of 24 | 66.4 |
| Indirect bidders' share | 64.2 | All 38 since 22 April 2008 | 14 of 38 | 24 of 38 | 58.7 |
| Direct bidders' share | 8.7 | Last 24 auctions | 12 of 24 | 12 of 24 | 8.5 |
| Direct bidders' share | 8.7 | All 38 since 22 April 2008 | 18 of 38 | 20 of 38 | 8.3 |
| Primary dealers' share | 27.1 | Last 24 auctions | 8 of 24 | 16 of 24 | 21.0 |
| Primary dealers' share | 27.1 | All 38 since 22 April 2008 | 22 of 38 | 16 of 38 | 32.5 |
| High minus median, basis points | 4.5 | Last 24 auctions | 14 of 24 | 9 of 24 | 4.9 |
| High minus median, basis points | 4.5 | Since 22 April 2008 | 26 of 38 | 11 of 38 | 5.4 |
| High minus median, basis points | 4.5 | All 44 since 9 July 1997 | 27 of 44 | 15 of 44 | 5.2 |
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 .
Observed .
How to cite this
U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 22 December 2020. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20201222_3.pdf. Compiled by 500metrics, "5-year TIPS auction of 22 December 2020 (reopening)", https://500metrics.com/treasury/auctions/5-year-tips/2020-12-22.
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