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7-year note auction of 25 March 2010 (new issue)

The 7-year note sold $33.082 billion at a high yield of 3.374% on , with a bid-to-cover ratio of 2.61.

Coupon
3.250%
Announced
Issued
Matures

High yield

3.374%

Median yield 3.289%

Bid-to-cover

2.61

▼ −0.37 since 25 Feb

Sold

$33.08 billion

$32 billion offered

Indirect bidders

41.9%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 13 April 1993

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 13 April 199336 auctions from 6 January 1988 to 25 March 2010; the latest at 3.374%.2.0%4.0%6.0%8.0%10.0%19881989199019911992199320092010This auction, 3.374%The high yield was the highest for a 7-year note since 13 April 199336 auctions from 6 January 1988 to 25 March 2010; the latest at 3.374%.2.0%4.0%6.0%8.0%10.0%19921993200920103.374%

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
3.3742.61
3.0782.98
3.1272.85
3.3452.72
2.8352.76
3.1412.65
3.0052.79
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.612.739 of 123 of 12
High yield3.3743.1100 of 1212 of 12
Indirect bidders' share41.955.28 of 124 of 12
Direct bidders' share8.15.03 of 129 of 12
Primary dealers' share50.037.13 of 129 of 12
High minus median, basis points8.57.52 of 129 of 12

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

Who bought the 7-year note?

Primary dealers took 50.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 February 2010

Primary dealers took 50.0% of the competitive bids acceptedIndirect bidders 41.9%, Direct bidders 8.1%, Primary dealers 50.0%Indirect bidders41.9%40.3%Direct bidders8.1%17.2%Primary dealers50.0%42.4%Primary dealers took 50.0% of the competitive bids acceptedIndirect bidders 41.9%, Direct bidders 8.1%, Primary dealers 50.0%Indirect bidders41.9%40.3%Direct bidders8.1%17.2%Primary dealers50.0%42.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders41.940.3
Direct bidders8.117.2
Primary dealers50.042.4

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$32,000,000,000
Bids received$84,451,432,700
Sold$33,082,472,700
Competitive bids accepted$31,954,140,000
Non-competitive bids accepted$45,864,700
Federal Reserve (SOMA) add-on$1,082,468,000
Foreign and international (FIMA) non-competitive$0
High yield, %3.374
Median rate, %3.289
Low rate, %3.229
Interest rate (coupon), %3.250
Bids at the high rate filled, %83.04
Bid-to-cover ratio2.61
Indirect bidders accepted$13,379,140,000
Direct bidders accepted$2,593,000,000
Primary dealers accepted$15,982,000,000
Indirect bidders' share, % (ours)41.9
Direct bidders' share, % (ours)8.1
Primary dealers' share, % (ours)50.0
High minus median, basis points (ours)8.5
Treasury par yield curve, 7-year point, same day, %3.37
High yield minus that point, basis points (ours)0.4

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
Bid-to-cover ratio2.61All 13 since 26 February 20099 of 134 of 132.72
High yield3.374Last 24 auctions11 of 2413 of 243.357
High yield3.374Since 26 February 20090 of 1313 of 133.092
High yield3.374All 62 since 6 February 198049 of 6213 of 628.355
Indirect bidders' share41.9All 13 since 26 February 20098 of 135 of 1351.1
Direct bidders' share8.1All 13 since 26 February 20093 of 1310 of 133.7
Primary dealers' share50.0All 13 since 26 February 20094 of 139 of 1337.1
High minus median, basis points8.5Last 24 auctions2 of 2421 of 243.8
High minus median, basis points8.5Since 26 February 20092 of 1310 of 137.8
High minus median, basis points8.5All 62 since 6 February 19803 of 6258 of 622.8

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 25 March 2010. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/R_20100325_1.pdf. Compiled by 500metrics, "7-year note auction of 25 March 2010 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2010-03-25.

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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