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7-year note auction of 26 May 2011 (new issue)

The 7-year note sold $31.441 billion at a high yield of 2.429% on , with a bid-to-cover ratio of 3.24.

Coupon
2.375%
Announced
Issued
Matures

High yield

2.429%

Median yield 2.400%

Bid-to-cover

3.24

▲ +0.61 since 28 Apr

Sold

$31.44 billion

$29 billion offered

Indirect bidders

47.6%

Of competitive bids accepted

High yield at the last 36 7-year note auctions

High yield at each 7-year note auction, %

High yield at the last 36 7-year note auctions36 auctions from 10 July 1991 to 26 May 2011; the latest at 2.429%.0.0%2.0%4.0%6.0%8.0%10.0%19921993200920102011This auction, 2.429%High yield at the last 36 7-year note auctions36 auctions from 10 July 1991 to 26 May 2011; the latest at 2.429%.1.5%2.0%2.5%3.0%3.5%2009201020112.429%

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
2.4293.24
2.7122.63
2.8952.79
2.8542.86
2.7442.85
2.8302.86
2.2532.63
1.9703.06
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.242.860 of 1212 of 12
High yield2.4292.6447 of 125 of 12
Indirect bidders' share47.650.29 of 123 of 12
Direct bidders' share13.08.51 of 1211 of 12
Primary dealers' share39.442.07 of 125 of 12
High minus median, basis points2.95.212 of 120 of 12

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

  • Bid-to-cover ratio: Highest of all 27 earlier 7-year note auctions we hold.
  • High minus median, basis points: Lowest for a 7-year note since 25 February 2010 (14 auctions in between).

Who bought the 7-year note?

Indirect bidders took 47.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 28 April 2011

Indirect bidders took 47.6% of the competitive bids acceptedIndirect bidders 47.6%, Direct bidders 13.0%, Primary dealers 39.4%Indirect bidders47.6%39.1%Direct bidders13.0%7.9%Primary dealers39.4%53.0%Indirect bidders took 47.6% of the competitive bids acceptedIndirect bidders 47.6%, Direct bidders 13.0%, Primary dealers 39.4%Indirect bidders47.6%39.1%Direct bidders13.0%7.9%Primary dealers39.4%53.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders47.639.1
Direct bidders13.07.9
Primary dealers39.453.0

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$96,346,723,100
Sold$31,440,908,600
Competitive bids accepted$28,980,960,500
Non-competitive bids accepted$19,056,100
Federal Reserve (SOMA) add-on$2,440,892,000
Foreign and international (FIMA) non-competitive$0
High yield, %2.429
Median rate, %2.400
Low rate, %2.330
Interest rate (coupon), %2.375
Bids at the high rate filled, %43.21
Bid-to-cover ratio3.24
Indirect bidders accepted$13,807,775,000
Direct bidders accepted$3,768,160,500
Primary dealers accepted$11,405,025,000
Indirect bidders' share, % (ours)47.6
Direct bidders' share, % (ours)13.0
Primary dealers' share, % (ours)39.4
High minus median, basis points (ours)2.9
Treasury par yield curve, 7-year point, same day, %2.40
High yield minus that point, basis points (ours)2.9

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 ratio3.24Last 24 auctions0 of 2424 of 242.80
Bid-to-cover ratio3.24All 27 since 26 February 20090 of 2727 of 272.79
High yield2.429Last 24 auctions19 of 245 of 242.874
High yield2.429Since 26 February 200921 of 276 of 272.835
High yield2.429All 76 since 6 February 198070 of 766 of 767.700
Indirect bidders' share47.6Last 24 auctions17 of 247 of 2451.0
Indirect bidders' share47.6All 27 since 26 February 200917 of 2710 of 2750.2
Direct bidders' share13.0Last 24 auctions2 of 2422 of 248.0
Direct bidders' share13.0All 27 since 26 February 20092 of 2725 of 277.6
Primary dealers' share39.4Last 24 auctions11 of 2413 of 2438.4
Primary dealers' share39.4All 27 since 26 February 200914 of 2713 of 2741.8
High minus median, basis points2.9Last 24 auctions22 of 241 of 246.4
High minus median, basis points2.9Since 26 February 200925 of 271 of 276.5
High minus median, basis points2.9All 76 since 6 February 198044 of 7631 of 763.0

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 May 2011. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2011/R_20110526_1.pdf. Compiled by 500metrics, "7-year note auction of 26 May 2011 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2011-05-26.

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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