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7-year note auction of 26 August 2010 (new issue)

The 7-year note sold $29.71 billion at a high yield of 1.989% on , with a bid-to-cover ratio of 2.98.

Coupon
1.875%
Announced
Issued
Matures

High yield

1.989%

Median yield 1.950%

Bid-to-cover

2.98

▲ +0.20 since 29 Jul

Sold

$29.71 billion

$29 billion offered

Indirect bidders

56.7%

Of competitive bids accepted

The high yield was the lowest for a 7-year note of all 67 earlier auctions we hold

High yield at each 7-year note auction, %

The high yield was the lowest for a 7-year note of all 67 earlier auctions we hold36 auctions from 12 April 1989 to 26 August 2010; the latest at 1.989%.0.0%2.0%4.0%6.0%8.0%10.0%1989199019911992199320092010This auction, 1.989%The high yield was the lowest for a 7-year note of all 67 earlier auctions we hold36 auctions from 12 April 1989 to 26 August 2010; the latest at 1.989%.0.0%2.0%4.0%6.0%8.0%1993200920101.989%

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
1.9892.98
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.982.781 of 1210 of 12
High yield1.9893.08512 of 120 of 12
Indirect bidders' share56.751.15 of 127 of 12
Direct bidders' share8.69.37 of 125 of 12
Primary dealers' share34.837.39 of 123 of 12
High minus median, basis points3.96.610 of 122 of 12

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

Who bought the 7-year note?

Indirect bidders took 56.7% of the competitive bids accepted

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

Indirect bidders took 56.7% of the competitive bids acceptedIndirect bidders 56.7%, Direct bidders 8.6%, Primary dealers 34.8%Indirect bidders56.7%42.3%Direct bidders8.6%9.0%Primary dealers34.8%48.8%Indirect bidders took 56.7% of the competitive bids acceptedIndirect bidders 56.7%, Direct bidders 8.6%, Primary dealers 34.8%Indirect bidders56.7%42.3%Direct bidders8.6%9.0%Primary dealers34.8%48.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders56.742.3
Direct bidders8.69.0
Primary dealers34.848.8

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$87,245,992,900
Sold$29,710,045,700
Competitive bids accepted$28,864,452,800
Non-competitive bids accepted$35,555,800
Federal Reserve (SOMA) add-on$710,037,100
Foreign and international (FIMA) non-competitive$100,000,000
High yield, %1.989
Median rate, %1.950
Low rate, %1.900
Interest rate (coupon), %1.875
Bids at the high rate filled, %49.76
Bid-to-cover ratio2.98
Indirect bidders accepted$16,359,960,000
Direct bidders accepted$2,470,492,800
Primary dealers accepted$10,034,000,000
Indirect bidders' share, % (ours)56.7
Direct bidders' share, % (ours)8.6
Primary dealers' share, % (ours)34.8
High minus median, basis points (ours)3.9
Treasury par yield curve, 7-year point, same day, %1.97
High yield minus that point, basis points (ours)1.9

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 ratio2.98All 18 since 26 February 20091 of 1816 of 182.75
High yield1.989Last 24 auctions24 of 240 of 243.176
High yield1.989Since 26 February 200918 of 180 of 183.085
High yield1.989All 67 since 6 February 198067 of 670 of 678.080
Indirect bidders' share56.7All 18 since 26 February 20097 of 1811 of 1851.0
Direct bidders' share8.6All 18 since 26 February 20097 of 1811 of 187.1
Primary dealers' share34.8All 18 since 26 February 200914 of 184 of 1838.4
High minus median, basis points3.9Last 24 auctions17 of 247 of 246.4
High minus median, basis points3.9Since 26 February 200915 of 183 of 187.1
High minus median, basis points3.9All 67 since 6 February 198024 of 6743 of 673.0

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 26 August 2010. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/R_20100826_1.pdf. Compiled by 500metrics, "7-year note auction of 26 August 2010 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2010-08-26.

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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