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7-year note auction of 29 July 2010 (new issue)

The 7-year note sold $29.952 billion at a high yield of 2.394% on , with a bid-to-cover ratio of 2.78.

Coupon
2.375%
Announced
Issued
Matures

High yield

2.394%

Median yield 2.330%

Bid-to-cover

2.78

▼ −0.23 since 24 Jun

Sold

$29.95 billion

$29 billion offered

Indirect bidders

42.3%

Of competitive bids accepted

The high yield was the lowest for a 7-year note since 26 March 2009

High yield at each 7-year note auction, %

The high yield was the lowest for a 7-year note since 26 March 200936 auctions from 11 January 1989 to 29 July 2010; the latest at 2.394%.2.0%4.0%6.0%8.0%10.0%1989199019911992199320092010This auction, 2.394%The high yield was the lowest for a 7-year note since 26 March 200936 auctions from 11 January 1989 to 29 July 2010; the latest at 2.394%.2.0%4.0%6.0%8.0%1993200920102.394%

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
2.3942.78
2.5753.01
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.782.786 of 126 of 12
High yield2.3943.11012 of 120 of 12
Indirect bidders' share42.355.210 of 122 of 12
Direct bidders' share9.08.96 of 126 of 12
Primary dealers' share48.837.11 of 1211 of 12
High minus median, basis points6.46.98 of 124 of 12

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

Who bought the 7-year note?

Primary dealers took 48.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 24 June 2010

Primary dealers took 48.8% of the competitive bids acceptedIndirect bidders 42.3%, Direct bidders 9.0%, Primary dealers 48.8%Indirect bidders42.3%51.0%Direct bidders9.0%9.8%Primary dealers48.8%39.2%Primary dealers took 48.8% of the competitive bids acceptedIndirect bidders 42.3%, Direct bidders 9.0%, Primary dealers 48.8%Indirect bidders42.3%51.0%Direct bidders9.0%9.8%Primary dealers48.8%39.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders42.351.0
Direct bidders9.09.8
Primary dealers48.839.2

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$29,000,000,000
Bids received$81,444,274,000
Sold$29,952,301,500
Competitive bids accepted$28,918,027,500
Non-competitive bids accepted$57,017,500
Federal Reserve (SOMA) add-on$952,256,500
Foreign and international (FIMA) non-competitive$25,000,000
High yield, %2.394
Median rate, %2.330
Low rate, %2.268
Interest rate (coupon), %2.375
Bids at the high rate filled, %25.57
Bid-to-cover ratio2.78
Indirect bidders accepted$12,218,242,500
Direct bidders accepted$2,601,000,000
Primary dealers accepted$14,098,785,000
Indirect bidders' share, % (ours)42.3
Direct bidders' share, % (ours)9.0
Primary dealers' share, % (ours)48.8
High minus median, basis points (ours)6.4
Treasury par yield curve, 7-year point, same day, %2.40
High yield minus that point, basis points (ours)-0.6

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 ratio2.78All 17 since 26 February 20097 of 1710 of 172.74
High yield2.394Last 24 auctions23 of 241 of 243.255
High yield2.394Since 26 February 200916 of 171 of 173.092
High yield2.394All 66 since 6 February 198065 of 661 of 668.100
Indirect bidders' share42.3All 17 since 26 February 200911 of 176 of 1751.1
Direct bidders' share9.0All 17 since 26 February 20096 of 1711 of 176.6
Primary dealers' share48.8All 17 since 26 February 20095 of 1712 of 1737.5
High minus median, basis points6.4Last 24 auctions12 of 2412 of 246.0
High minus median, basis points6.4Since 26 February 200912 of 175 of 177.2
High minus median, basis points6.4All 66 since 6 February 198014 of 6652 of 663.0

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 29 July 2010. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/R_20100729_1.pdf. Compiled by 500metrics, "7-year note auction of 29 July 2010 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2010-07-29.

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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