500metrics

All sources checked Checked

7-year note auction of 27 May 2010 (new issue)

The 7-year note sold $31.674 billion at a high yield of 2.815% on , with a bid-to-cover ratio of 2.88.

Coupon
2.750%
Announced
Issued
Matures

High yield

2.815%

Median yield 2.750%

Bid-to-cover

2.88

▲ +0.06 since 29 Apr

Sold

$31.67 billion

$31 billion offered

Indirect bidders

51.1%

Of competitive bids accepted

The high yield was the lowest for a 7-year note since 29 April 2009

High yield at each 7-year note auction, %

The high yield was the lowest for a 7-year note since 29 April 200936 auctions from 12 July 1988 to 27 May 2010; the latest at 2.815%.2.0%4.0%6.0%8.0%10.0%1989199019911992199320092010This auction, 2.815%The high yield was the lowest for a 7-year note since 29 April 200936 auctions from 12 July 1988 to 27 May 2010; the latest at 2.815%.2.0%4.0%6.0%8.0%10.0%19921993200920102.815%

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
2.8152.88
3.2102.82
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.882.751 of 1211 of 12
High yield2.8153.17612 of 120 of 12
Indirect bidders' share51.159.47 of 125 of 12
Direct bidders' share11.46.53 of 129 of 12
Primary dealers' share37.536.94 of 128 of 12
High minus median, basis points6.57.48 of 124 of 12

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

Who bought the 7-year note?

Indirect bidders took 51.1% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 29 April 2010

Indirect bidders took 51.1% of the competitive bids acceptedIndirect bidders 51.1%, Direct bidders 11.4%, Primary dealers 37.5%Indirect bidders51.1%59.5%Direct bidders11.4%12.2%Primary dealers37.5%28.3%Indirect bidders took 51.1% of the competitive bids acceptedIndirect bidders 51.1%, Direct bidders 11.4%, Primary dealers 37.5%Indirect bidders51.1%59.5%Direct bidders11.4%12.2%Primary dealers37.5%28.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders51.159.5
Direct bidders11.412.2
Primary dealers37.528.3

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$31,000,000,000
Bids received$89,991,236,000
Sold$31,673,639,000
Competitive bids accepted$30,970,053,000
Non-competitive bids accepted$29,954,200
Federal Reserve (SOMA) add-on$673,631,800
Foreign and international (FIMA) non-competitive$0
High yield, %2.815
Median rate, %2.750
Low rate, %2.682
Interest rate (coupon), %2.750
Bids at the high rate filled, %87.74
Bid-to-cover ratio2.88
Indirect bidders accepted$15,827,476,000
Direct bidders accepted$3,520,298,000
Primary dealers accepted$11,622,279,000
Indirect bidders' share, % (ours)51.1
Direct bidders' share, % (ours)11.4
Primary dealers' share, % (ours)37.5
High minus median, basis points (ours)6.5
Treasury par yield curve, 7-year point, same day, %2.81
High yield minus that point, basis points (ours)0.5

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 ratio2.88All 15 since 26 February 20091 of 1514 of 152.72
High yield2.815Last 24 auctions21 of 243 of 243.337
High yield2.815Since 26 February 200912 of 153 of 153.127
High yield2.815All 64 since 6 February 198061 of 643 of 648.190
Indirect bidders' share51.1All 15 since 26 February 20097 of 158 of 1551.1
Direct bidders' share11.4All 15 since 26 February 20093 of 1512 of 156.3
Primary dealers' share37.5All 15 since 26 February 20097 of 158 of 1537.1
High minus median, basis points6.5Last 24 auctions11 of 2413 of 244.8
High minus median, basis points6.5Since 26 February 200911 of 154 of 157.8
High minus median, basis points6.5All 64 since 6 February 198013 of 6451 of 643.0

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 May 2010. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/R_20100527_1.pdf. Compiled by 500metrics, "7-year note auction of 27 May 2010 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2010-05-27.

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

Our text and compilation: CC BY 4.0. How to reuse and cite this page.