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7-year note auction of 28 July 2011 (new issue)

The 7-year note sold $29.864 billion at a high yield of 2.280% on , with a bid-to-cover ratio of 2.63.

Coupon
2.250%
Announced
Issued
Matures

High yield

2.280%

Median yield 2.222%

Bid-to-cover

2.63

▲ +0.01 since 29 Jun

Sold

$29.86 billion

$29 billion offered

Indirect bidders

39.6%

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 8 January 1992 to 28 July 2011; the latest at 2.280%.0.0%2.0%4.0%6.0%8.0%19921993200920102011This auction, 2.280%High yield at the last 36 7-year note auctions36 auctions from 8 January 1992 to 28 July 2011; the latest at 2.280%.1.5%2.0%2.5%3.0%3.5%2009201020112.280%

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
2.2802.63
2.4302.62
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.632.869 of 121 of 12
High yield2.2802.4308 of 124 of 12
Indirect bidders' share39.649.510 of 122 of 12
Direct bidders' share9.38.53 of 129 of 12
Primary dealers' share51.243.32 of 1210 of 12
High minus median, basis points5.85.15 of 126 of 12

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

Who bought the 7-year note?

Primary dealers took 51.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 29 June 2011

Primary dealers took 51.2% of the competitive bids acceptedIndirect bidders 39.6%, Direct bidders 9.3%, Primary dealers 51.2%Indirect bidders39.6%32.2%Direct bidders9.3%11.8%Primary dealers51.2%56.1%Primary dealers took 51.2% of the competitive bids acceptedIndirect bidders 39.6%, Direct bidders 9.3%, Primary dealers 51.2%Indirect bidders39.6%32.2%Direct bidders9.3%11.8%Primary dealers51.2%56.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders39.632.2
Direct bidders9.311.8
Primary dealers51.256.1

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$77,129,551,800
Sold$29,863,551,800
Competitive bids accepted$28,986,960,000
Non-competitive bids accepted$13,059,800
Federal Reserve (SOMA) add-on$863,532,000
Foreign and international (FIMA) non-competitive$0
High yield, %2.280
Median rate, %2.222
Low rate, %2.097
Interest rate (coupon), %2.250
Bids at the high rate filled, %72.00
Bid-to-cover ratio2.63
Indirect bidders accepted$11,464,960,000
Direct bidders accepted$2,685,000,000
Primary dealers accepted$14,837,000,000
Indirect bidders' share, % (ours)39.6
Direct bidders' share, % (ours)9.3
Primary dealers' share, % (ours)51.2
High minus median, basis points (ours)5.8
Treasury par yield curve, 7-year point, same day, %2.26
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 ratio2.63Last 24 auctions19 of 242 of 242.80
Bid-to-cover ratio2.63All 29 since 26 February 200920 of 296 of 292.79
High yield2.280Last 24 auctions20 of 244 of 242.832
High yield2.280Since 26 February 200925 of 294 of 292.830
High yield2.280All 78 since 6 February 198074 of 784 of 787.430
Indirect bidders' share39.6Last 24 auctions22 of 242 of 2450.6
Indirect bidders' share39.6All 29 since 26 February 200923 of 296 of 2950.2
Direct bidders' share9.3Last 24 auctions9 of 2415 of 248.5
Direct bidders' share9.3All 29 since 26 February 20099 of 2920 of 297.9
Primary dealers' share51.2Last 24 auctions2 of 2422 of 2439.3
Primary dealers' share51.2All 29 since 26 February 20096 of 2923 of 2941.8
High minus median, basis points5.8Last 24 auctions13 of 2410 of 246.4
High minus median, basis points5.8Since 26 February 200917 of 2911 of 296.5
High minus median, basis points5.8All 78 since 6 February 198021 of 7856 of 783.0

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 28 July 2011. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2011/R_20110728_1.pdf. Compiled by 500metrics, "7-year note auction of 28 July 2011 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2011-07-28.

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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