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7-year note auction of 29 September 2011 (new issue)

The 7-year note sold $29.903 billion at a high yield of 1.496% on , with a bid-to-cover ratio of 3.02.

Coupon
1.375%
Announced
Issued
Matures

High yield

1.496%

Median yield 1.439%

Bid-to-cover

3.02

▲ +0.26 since 25 Aug

Sold

$29.90 billion

$29 billion offered

Indirect bidders

41.6%

Of competitive bids accepted

The high yield was the lowest for a 7-year note of all 80 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 80 earlier auctions we hold36 auctions from 8 July 1992 to 29 September 2011; the latest at 1.496%.0.0%2.0%4.0%6.0%8.0%1993200920102011This auction, 1.496%The high yield was the lowest for a 7-year note of all 80 earlier auctions we hold36 auctions from 8 July 1992 to 29 September 2011; the latest at 1.496%.1.0%1.5%2.0%2.5%3.0%3.5%201020111.496%

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
1.4963.02
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.022.823 of 129 of 12
High yield1.4962.43012 of 120 of 12
Indirect bidders' share41.649.59 of 123 of 12
Direct bidders' share13.68.20 of 1212 of 12
Primary dealers' share44.743.35 of 127 of 12
High minus median, basis points5.75.46 of 126 of 12

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

  • Direct bidders' share: Highest for a 7-year note since 25 February 2010 (18 auctions in between).

Who bought the 7-year note?

Primary dealers took 44.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 August 2011

Primary dealers took 44.7% of the competitive bids acceptedIndirect bidders 41.6%, Direct bidders 13.6%, Primary dealers 44.7%Indirect bidders41.6%51.7%Direct bidders13.6%7.9%Primary dealers44.7%40.4%Primary dealers took 44.7% of the competitive bids acceptedIndirect bidders 41.6%, Direct bidders 13.6%, Primary dealers 44.7%Indirect bidders41.6%51.7%Direct bidders13.6%7.9%Primary dealers44.7%40.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders41.651.7
Direct bidders13.67.9
Primary dealers44.740.4

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$88,421,064,400
Sold$29,902,866,400
Competitive bids accepted$28,986,202,000
Non-competitive bids accepted$13,800,800
Federal Reserve (SOMA) add-on$902,863,600
Foreign and international (FIMA) non-competitive$0
High yield, %1.496
Median rate, %1.439
Low rate, %1.330
Interest rate (coupon), %1.375
Bids at the high rate filled, %3.77
Bid-to-cover ratio3.02
Indirect bidders accepted$12,063,900,000
Direct bidders accepted$3,954,500,000
Primary dealers accepted$12,967,802,000
Indirect bidders' share, % (ours)41.6
Direct bidders' share, % (ours)13.6
Primary dealers' share, % (ours)44.7
High minus median, basis points (ours)5.7
Treasury par yield curve, 7-year point, same day, %1.48
High yield minus that point, basis points (ours)1.6

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 ratio3.02Last 24 auctions3 of 2421 of 242.80
Bid-to-cover ratio3.02All 31 since 26 February 20093 of 3128 of 312.78
High yield1.496Last 24 auctions24 of 240 of 242.780
High yield1.496Since 26 February 200931 of 310 of 312.815
High yield1.496All 80 since 6 February 198080 of 800 of 807.280
Indirect bidders' share41.6Last 24 auctions20 of 244 of 2450.2
Indirect bidders' share41.6All 31 since 26 February 200923 of 318 of 3150.2
Direct bidders' share13.6Last 24 auctions1 of 2423 of 248.7
Direct bidders' share13.6All 31 since 26 February 20091 of 3130 of 317.9
Primary dealers' share44.7Last 24 auctions8 of 2416 of 2441.1
Primary dealers' share44.7All 31 since 26 February 200912 of 3119 of 3141.8
High minus median, basis points5.7Last 24 auctions13 of 2411 of 245.8
High minus median, basis points5.7Since 26 February 200919 of 3112 of 316.4
High minus median, basis points5.7All 80 since 6 February 198023 of 8057 of 803.0

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 2011. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2011/R_20110929_1.pdf. Compiled by 500metrics, "7-year note auction of 29 September 2011 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2011-09-29.

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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