Earlier today, the Treasury concluded its November refunding operation by auctioning $13.0 billion of 10-year notes. The issue was sold at a market-clearing yield of 4.578%, and the auction had a bid-to-cover ratio of 2.24.
By comparison, the 10-year note auctioned in the August refunding went off at a market-clearing yield of 4.350% (carrying a coupon of 4.250%), with a bid-to-cover ratio of 2.59.
In today's auction, total competitive and noncompetitive tenders were $29.076 billion, excluding an allotment of $2.221
billion to the Federal Reserve System. Additional details are contained in the tables below.
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RESULTS OF THE NOVEMBER 2005
TREASURY REFUNDING OPERATION
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Bid/
Auct. Amt. Cover Non-
Date (Bils) Maturity Coupon Yield Price Ratio Comp.#
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11/08 $18.0 11/15/08 4.375% 4.458% 99.769+ 2.42 $0.437
11/09 $13.0 11/15/10 4.500% 4.525% 99.889+ 2.61 $0.283
11/10 $13.0 11/15/15 4.500% 4.578% 99.380- 2.59 $0.182
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#Amount of issue (in billions) awarded
based on non-competitive tenders submitted.
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DETAILS OF COMPETITIVE TENDERS/AWARDS
(Amounts in Thousands of Dollars)
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% of
Tendered Accepted Accepted
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10-Year Note Auction (4.500% of 11/15/15)
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Primary Dealer[1] 17995000 5615700 43.8
Direct Bidder[2] 2082000 77000 0.6
Indirect Bidder[3] 8817000 7125000 55.6
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Total 28894000 12817700 100.0
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Five-Year Note Auction (4.500s of 11/15/10)
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Primary Dealer[1] 25371000 8851675 69.6
Direct Bidder[2] 2593000 1178183 9.3
Indirect Bidder[3] 5737400 2687400 21.1
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Total 33701400 12717258 100.0
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Three-Year Note Auction (4.375s of 11/15/08)
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Primary Dealer[1] 32897000 12121800 69.0
Direct Bidder[2] 1176000 186000 1.1
Indirect Bidder[3] 9005000 5255000 29.9
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Total 43078000 17562880 100.0
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[1]Primary dealers as submitters bidding for
their own house accounts. [2]Non-Primary dealer
submitters bidding or their own house accounts.
[3]Customers placing competitive bids through a
direct submitter, including foreign and inter-
national monetary authorities placing bids
through the New York Federal Reserve Bank.
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