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7-year note auction of 29 April 2009 (new issue)

The 7-year note sold $26.901 billion at a high yield of 2.630% on , with a bid-to-cover ratio of 2.28.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.630%

Median yield 2.550%

Bid-to-cover

2.28

▼ −0.24 since 26 Mar

Sold

$26.90 billion

$26 billion offered

Indirect bidders

33.0%

Of competitive bids accepted

High yield at the last 36 7-year note auctions

High yield at each 7-year note auction, %

High yield at the last 36 7-year note auctions36 auctions from 16 October 1984 to 29 April 2009; the latest at 2.630%.0.0%2.5%5.0%7.5%10.0%12.5%1985198619871988198919901991199219932009This auction, 2.630%High yield at the last 36 7-year note auctions36 auctions from 16 October 1984 to 29 April 2009; the latest at 2.630%.2.0%4.0%6.0%8.0%10.0%1989199019911992199320092.630%

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

The 36 auctions as a table
High yield and bid-to-cover of the last 36 7-year note auctions, newest first
AuctionHigh yield, %Bid-to-cover
2.6302.28
2.3842.52
2.7482.11
5.580–
6.440–
6.050–
6.450–
7.140–
6.410–
7.200–
8.260–
7.940–
7.950–
8.790–
8.580–
8.630–
8.020–
8.080–
7.900–
9.400–
9.300–
8.750–
8.920–
8.450–
8.680–
9.540–
8.120–
7.040–
7.100–
7.360–
7.500–
8.870–
10.410–
11.850–
11.700–
12.350–

Against its own history

Against every earlier 7-year note auction we hold
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.282.321 of 21 of 2
High yield2.6306.44511 of 121 of 12
Indirect bidders' share33.033.41 of 21 of 2
Direct bidders' share3.35.72 of 20 of 2
Primary dealers' share63.761.01 of 21 of 2
High minus median, basis points8.02.00 of 1212 of 12

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

  • High minus median, basis points: Highest for a 7-year note since 6 January 1982 (45 auctions in between).

Who bought the 7-year note?

Primary dealers took 63.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 26 March 2009

Primary dealers took 63.7% of the competitive bids acceptedIndirect bidders 33.0%, Direct bidders 3.3%, Primary dealers 63.7%Indirect bidders33.0%28.0%Direct bidders3.3%7.6%Primary dealers63.7%64.3%Primary dealers took 63.7% of the competitive bids acceptedIndirect bidders 33.0%, Direct bidders 3.3%, Primary dealers 63.7%Indirect bidders33.0%28.0%Direct bidders3.3%7.6%Primary dealers63.7%64.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders33.028.0
Direct bidders3.37.6
Primary dealers63.764.3

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as7-Year, new issue
Offering amount$26,000,000,000
Bids received$60,223,034,100
Sold$26,901,046,100
Competitive bids accepted$25,992,912,000
Non-competitive bids accepted$7,168,800
Federal Reserve (SOMA) add-on$900,965,300
Foreign and international (FIMA) non-competitive$0
High yield, %2.630
Median rate, %2.550
Low rate, %2.400
Interest rate (coupon), %2.625
Bids at the high rate filled, %18.93
Bid-to-cover ratio2.28
Indirect bidders accepted$8,574,469,000
Direct bidders accepted$865,876,500
Primary dealers accepted$16,552,566,500
Indirect bidders' share, % (ours)33.0
Direct bidders' share, % (ours)3.3
Primary dealers' share, % (ours)63.7
High minus median, basis points (ours)8.0
Treasury par yield curve, 7-year point, same day, %2.69
High yield minus that point, basis points (ours)-6.0

Treasury's own files: announcement (PDF) · results (PDF)

How to read this result

The high 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.

The par yield curve comparison sets the high yield against Treasury's own par yield curve on the auction day, at the point nearest this security's maturity (7-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 this number cannot tell you

  • 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 longer windows

Each measure against earlier 7-year note auctions: how many were higher and lower, and their median
MeasureThis auctionWindowHigherLowerMedian
High yield2.630Last 12 auctions11 of 121 of 126.445
High yield2.630Last 24 auctions23 of 241 of 247.985
High yield2.630Since 26 February 20091 of 21 of 22.566
High minus median, basis points8.0Last 12 auctions0 of 1212 of 122.0
High minus median, basis points8.0Last 24 auctions0 of 2424 of 241.0
High minus median, basis points8.0Since 26 February 20090 of 22 of 27.5

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

Sources

Source: U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data. Observed .

Shares of competitive bids, grades against earlier auctions and the high-minus-median spread are computed by 500metrics from Treasury's published fields; how.

Source: U.S. Treasury, Daily Treasury par yield curve rates. Observed .

How to cite this

U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 29 April 2009. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/R_20090429_1.pdf. Compiled by 500metrics, "7-year note auction of 29 April 2009 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2009-04-29.

Sources and licence

Sources and licence

  • U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data (source). Licence: Public domain, a work of the US federal government
  • U.S. Treasury, daily par yield curve rates (source). Licence: Public domain, a work of the US federal government

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