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7-year note auction of 27 August 2009 (new issue)

The 7-year note sold $28.843 billion at a high yield of 3.092% on , with a bid-to-cover ratio of 2.74.

Coupon
3.000%
Announced
Issued
Matures

High yield

3.092%

Median yield 3.014%

Bid-to-cover

2.74

▲ +0.11 since 30 Jul

Sold

$28.84 billion

$28 billion offered

Indirect bidders

61.2%

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 7 January 1986 to 27 August 2009; the latest at 3.092%.2.0%4.0%6.0%8.0%10.0%198619871988198919901991199219932009This auction, 3.092%High yield at the last 36 7-year note auctions36 auctions from 7 January 1986 to 27 August 2009; the latest at 3.092%.2.0%4.0%6.0%8.0%10.0%199019911992199320093.092%

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
3.0922.74
3.3692.63
3.3292.82
3.3002.26
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–

Against its own history

Against every earlier 7-year note auction we hold
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.742.401 of 65 of 6
High yield3.0924.4749 of 123 of 12
Indirect bidders' share61.235.82 of 64 of 6
Direct bidders' share2.13.45 of 61 of 6
Primary dealers' share36.760.64 of 62 of 6
High minus median, basis points7.84.03 of 128 of 12

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

Who bought the 7-year note?

Indirect bidders took 61.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 30 July 2009

Indirect bidders took 61.2% of the competitive bids acceptedIndirect bidders 61.2%, Direct bidders 2.1%, Primary dealers 36.7%Indirect bidders61.2%62.5%Direct bidders2.1%1.5%Primary dealers36.7%36.0%Indirect bidders took 61.2% of the competitive bids acceptedIndirect bidders 61.2%, Direct bidders 2.1%, Primary dealers 36.7%Indirect bidders61.2%62.5%Direct bidders2.1%1.5%Primary dealers36.7%36.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders61.262.5
Direct bidders2.11.5
Primary dealers36.736.0

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$28,000,000,000
Bids received$77,565,144,200
Sold$28,842,683,200
Competitive bids accepted$27,947,089,000
Non-competitive bids accepted$52,942,500
Federal Reserve (SOMA) add-on$842,651,700
Foreign and international (FIMA) non-competitive$0
High yield, %3.092
Median rate, %3.014
Low rate, %2.970
Interest rate (coupon), %3.000
Bids at the high rate filled, %46.29
Bid-to-cover ratio2.74
Indirect bidders accepted$17,102,089,000
Direct bidders accepted$575,000,000
Primary dealers accepted$10,270,000,000
Indirect bidders' share, % (ours)61.2
Direct bidders' share, % (ours)2.1
Primary dealers' share, % (ours)36.7
High minus median, basis points (ours)7.8
Treasury par yield curve, 7-year point, same day, %3.12
High yield minus that point, basis points (ours)-2.8

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 yield3.092Last 12 auctions9 of 123 of 124.474
High yield3.092Last 24 auctions21 of 243 of 247.170
High yield3.092Since 26 February 20093 of 63 of 63.024
High minus median, basis points7.8Last 12 auctions3 of 128 of 124.0
High minus median, basis points7.8Last 24 auctions3 of 2420 of 241.0
High minus median, basis points7.8Since 26 February 20093 of 62 of 67.9

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 27 August 2009. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/R_20090827_1.pdf. Compiled by 500metrics, "7-year note auction of 27 August 2009 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2009-08-27.

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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