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

The 7-year note sold $29.914 billion at a high yield of 1.890% on , with a bid-to-cover ratio of 3.04.

Coupon
1.875%
Announced
Issued
Matures

High yield

1.890%

Median yield 1.850%

Bid-to-cover

3.04

▲ +0.06 since 26 Aug

Sold

$29.91 billion

$29 billion offered

Indirect bidders

50.2%

Of competitive bids accepted

The high yield was the lowest for a 7-year note of all 68 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 68 earlier auctions we hold36 auctions from 12 July 1989 to 29 September 2010; the latest at 1.890%.0.0%2.0%4.0%6.0%8.0%10.0%199019911992199320092010This auction, 1.890%The high yield was the lowest for a 7-year note of all 68 earlier auctions we hold36 auctions from 12 July 1989 to 29 September 2010; the latest at 1.890%.0.0%2.0%4.0%6.0%8.0%1993200920101.890%

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
1.8903.04
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.042.800 of 1212 of 12
High yield1.8903.04212 of 120 of 12
Indirect bidders' share50.251.18 of 124 of 12
Direct bidders' share13.49.31 of 1211 of 12
Primary dealers' share36.437.38 of 124 of 12
High minus median, basis points4.06.49 of 123 of 12

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

  • Bid-to-cover ratio: Highest of all 19 earlier 7-year note auctions we hold.

Who bought the 7-year note?

Indirect bidders took 50.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 26 August 2010

Indirect bidders took 50.2% of the competitive bids acceptedIndirect bidders 50.2%, Direct bidders 13.4%, Primary dealers 36.4%Indirect bidders50.2%56.7%Direct bidders13.4%8.6%Primary dealers36.4%34.8%Indirect bidders took 50.2% of the competitive bids acceptedIndirect bidders 50.2%, Direct bidders 13.4%, Primary dealers 36.4%Indirect bidders50.2%56.7%Direct bidders13.4%8.6%Primary dealers36.4%34.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.256.7
Direct bidders13.48.6
Primary dealers36.434.8

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$89,151,861,100
Sold$29,913,659,100
Competitive bids accepted$28,985,198,000
Non-competitive bids accepted$14,830,100
Federal Reserve (SOMA) add-on$913,631,000
Foreign and international (FIMA) non-competitive$0
High yield, %1.890
Median rate, %1.850
Low rate, %1.790
Interest rate (coupon), %1.875
Bids at the high rate filled, %40.21
Bid-to-cover ratio3.04
Indirect bidders accepted$14,563,463,000
Direct bidders accepted$3,878,000,000
Primary dealers accepted$10,543,735,000
Indirect bidders' share, % (ours)50.2
Direct bidders' share, % (ours)13.4
Primary dealers' share, % (ours)36.4
High minus median, basis points (ours)4.0
Treasury par yield curve, 7-year point, same day, %1.91
High yield minus that point, basis points (ours)-2.0

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 ratio3.04All 19 since 26 February 20090 of 1919 of 192.76
High yield1.890Last 24 auctions24 of 240 of 243.134
High yield1.890Since 26 February 200919 of 190 of 193.078
High yield1.890All 68 since 6 February 198068 of 680 of 688.050
Indirect bidders' share50.2All 19 since 26 February 200911 of 198 of 1951.1
Direct bidders' share13.4All 19 since 26 February 20091 of 1918 of 197.6
Primary dealers' share36.4All 19 since 26 February 200913 of 196 of 1937.5
High minus median, basis points4.0Last 24 auctions15 of 247 of 246.4
High minus median, basis points4.0Since 26 February 200915 of 194 of 197.0
High minus median, basis points4.0All 68 since 6 February 198020 of 6844 of 683.0

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 September 2010. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/R_20100929_2.pdf. Compiled by 500metrics, "7-year note auction of 29 September 2010 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2010-09-29.

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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