# Auctions

Source: https://www.yieldcurve.pro/auctions

This app allows users to explore different US Treasury Bill, Note, and Bond
auction data.



The different data items include

* **Tail** - This is the difference between the highest and average yield
obtained by auction participants (reported in basis points).  It is indicative
of whether or not all buyers paid a similar price or did some get bonds on the
cheap.  A small tail relative to history is considered better.
* **[Bid-to-Cover](https://www.yieldcurve.pro/learn/bid-to-cover)** - This measures the total amount of bids received for a given
auction divided by the amount actually sold.  Higher relative to history is
better.
* **Indirect** - This is the percentage of competitive bidders (typically
foreign central banks and institutions) placing bids through a primary dealer.
They participate this way because they are often unable or unwilling to bid
directly with the Treasury.  Higher relative to history is better.
* **Direct** - The is the percentage of institutions who are placing bids on the
auction directly with the US Treasury.  Higher relative to history is better.

## Instructions

* choose the desired **Start** and **End** dates using the two date selectors — the chart updates automatically
* choose the desired **Item** from the dropdown menu
* choose the desired **Tenor** from the dropdown menu
* click the **sparkle** button to open **ChatYCP** and ask questions about the data (login required)

## Notes

* **Start** and **End** are pre-populated with the earliest and latest dates
available, respectively
* **Tenor** is pre-populated with 4-Week
* each **Item** is given a letter grade (D- to A) relative to the entire
history selected by **Start** and **End**
* an equally weighted **Composite** is calculated from the 4 **Items**
* the most recent **Item** and **Composite** grades are show in the chart title
as well as **Avg** and **High** yields followed by the **Total** dollar amount
auctioned
* try asking ChatYCP: *"How was the most recent 10-Year auction?"* or *"Average bid-to-cover ratios by tenor?"*

Use Cases

* identify periods of strengthening or weakening auctions
* determine recent allocations in $ to different tenors
* automate auction analysis with the <a href="/api">REST API</a>

Further Reading

* <a href="https://www.treasurydirect.gov/auctions/upcoming/" target="_blank">Upcoming Auctions</a>
* <a href="https://www.tastylive.com/news-insights/reading-treasury-bond-auctions" target="_blank">Reading Treasury Bond Auctions</a>
* <a href="https://hamiltoncapitalpartnersllc.com/how-to-read-treasury-auctions" target="_blank">How To Read Treasury Bond Auctions</a>
* <a href="https://www.itcmarkets.com/how-to-read-bond-auction-results" target="_blank">How To Read Bond Auction Results</a>
* <a href="/blog/treasury-auction-liquidity-001">Treasury Auction Liquidity</a>
* <a href="/blog/treasury-auction-grades-001">Grading US Treasury Auctions</a>
* <a href="/blog/treasury-auction-grades-002">How Good Have Recent US Treasury Auctions Been?</a>