500metrics

All sources checked Checked

7-year note auction of 25 August 2011 (new issue)

The 7-year note sold $29.887 billion at a high yield of 1.580% on , with a bid-to-cover ratio of 2.76.

Coupon
1.500%
Announced
Issued
Matures

High yield

1.580%

Median yield 1.529%

Bid-to-cover

2.76

▲ +0.13 since 28 Jul

Sold

$29.89 billion

$29 billion offered

Indirect bidders

51.7%

Of competitive bids accepted

The high yield was the lowest for a 7-year note of all 79 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 79 earlier auctions we hold36 auctions from 8 April 1992 to 25 August 2011; the latest at 1.580%.0.0%2.0%4.0%6.0%8.0%19921993200920102011This auction, 1.580%The high yield was the lowest for a 7-year note of all 79 earlier auctions we hold36 auctions from 8 April 1992 to 25 August 2011; the latest at 1.580%.1.5%2.0%2.5%3.0%3.5%201020111.580%

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
1.5802.76
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.762.868 of 124 of 12
High yield1.5802.43012 of 120 of 12
Indirect bidders' share51.749.53 of 129 of 12
Direct bidders' share7.98.57 of 125 of 12
Primary dealers' share40.443.38 of 124 of 12
High minus median, basis points5.15.16 of 126 of 12

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

Who bought the 7-year note?

Indirect bidders took 51.7% of the competitive bids accepted

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

Indirect bidders took 51.7% of the competitive bids acceptedIndirect bidders 51.7%, Direct bidders 7.9%, Primary dealers 40.4%Indirect bidders51.7%39.6%Direct bidders7.9%9.3%Primary dealers40.4%51.2%Indirect bidders took 51.7% of the competitive bids acceptedIndirect bidders 51.7%, Direct bidders 7.9%, Primary dealers 40.4%Indirect bidders51.7%39.6%Direct bidders7.9%9.3%Primary dealers40.4%51.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders51.739.6
Direct bidders7.99.3
Primary dealers40.451.2

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$80,887,389,700
Sold$29,886,984,900
Competitive bids accepted$28,921,095,200
Non-competitive bids accepted$28,913,600
Federal Reserve (SOMA) add-on$886,976,100
Foreign and international (FIMA) non-competitive$50,000,000
High yield, %1.580
Median rate, %1.529
Low rate, %1.449
Interest rate (coupon), %1.500
Bids at the high rate filled, %79.88
Bid-to-cover ratio2.76
Indirect bidders accepted$14,957,961,200
Direct bidders accepted$2,281,440,000
Primary dealers accepted$11,681,694,000
Indirect bidders' share, % (ours)51.7
Direct bidders' share, % (ours)7.9
Primary dealers' share, % (ours)40.4
High minus median, basis points (ours)5.1
Treasury par yield curve, 7-year point, same day, %1.57
High yield minus that point, basis points (ours)1.0

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 ratio2.76Last 24 auctions15 of 248 of 242.80
Bid-to-cover ratio2.76All 30 since 26 February 200916 of 3013 of 302.78
High yield1.580Last 24 auctions24 of 240 of 242.822
High yield1.580Since 26 February 200930 of 300 of 302.822
High yield1.580All 79 since 6 February 198079 of 790 of 797.360
Indirect bidders' share51.7Last 24 auctions8 of 2416 of 2450.2
Indirect bidders' share51.7All 30 since 26 February 200910 of 3020 of 3049.9
Direct bidders' share7.9Last 24 auctions15 of 249 of 248.7
Direct bidders' share7.9All 30 since 26 February 200915 of 3015 of 308.0
Primary dealers' share40.4Last 24 auctions12 of 2412 of 2440.6
Primary dealers' share40.4All 30 since 26 February 200916 of 3014 of 3042.0
High minus median, basis points5.1Last 24 auctions15 of 249 of 246.1
High minus median, basis points5.1Since 26 February 200920 of 3010 of 306.4
High minus median, basis points5.1All 79 since 6 February 198024 of 7955 of 793.0

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 25 August 2011. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2011/R_20110825_1.pdf. Compiled by 500metrics, "7-year note auction of 25 August 2011 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2011-08-25.

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

Our text and compilation: CC BY 4.0. How to reuse and cite this page.