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7-year note auction of 23 November 2011 (new issue)

The 7-year note sold $30.314 billion at a high yield of 1.415% on , with a bid-to-cover ratio of 3.20.

Coupon
1.375%
Announced
Issued
Matures

High yield

1.415%

Median yield 1.390%

Bid-to-cover

3.20

▲ +0.61 since 27 Oct

Sold

$30.31 billion

$29 billion offered

Indirect bidders

39.9%

Of competitive bids accepted

The high yield was the lowest for a 7-year note of all 82 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 82 earlier auctions we hold36 auctions from 13 January 1993 to 23 November 2011; the latest at 1.415%.0.0%2.0%4.0%6.0%8.0%200920102011This auction, 1.415%The high yield was the lowest for a 7-year note of all 82 earlier auctions we hold36 auctions from 13 January 1993 to 23 November 2011; the latest at 1.415%.1.0%1.5%2.0%2.5%3.0%3.5%201020111.415%

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
1.4153.20
1.7912.59
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–

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio3.202.781 of 1211 of 12
High yield1.4152.43012 of 120 of 12
Indirect bidders' share39.944.98 of 124 of 12
Direct bidders' share18.98.60 of 1212 of 12
Primary dealers' share41.345.39 of 123 of 12
High minus median, basis points2.55.812 of 120 of 12

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

  • Direct bidders' share: Highest of all 33 earlier 7-year note auctions we hold.
  • High minus median, basis points: Lowest for a 7-year note since 8 July 1992 (36 auctions in between).

Who bought the 7-year note?

Primary dealers took 41.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 October 2011

Primary dealers took 41.3% of the competitive bids acceptedIndirect bidders 39.9%, Direct bidders 18.9%, Primary dealers 41.3%Indirect bidders39.9%33.9%Direct bidders18.9%11.9%Primary dealers41.3%54.2%Primary dealers took 41.3% of the competitive bids acceptedIndirect bidders 39.9%, Direct bidders 18.9%, Primary dealers 41.3%Indirect bidders39.9%33.9%Direct bidders18.9%11.9%Primary dealers41.3%54.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders39.933.9
Direct bidders18.911.9
Primary dealers41.354.2

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$94,208,082,800
Sold$30,314,142,800
Competitive bids accepted$28,979,885,000
Non-competitive bids accepted$20,289,500
Federal Reserve (SOMA) add-on$1,313,968,300
Foreign and international (FIMA) non-competitive$0
High yield, %1.415
Median rate, %1.390
Low rate, %1.296
Interest rate (coupon), %1.375
Bids at the high rate filled, %32.00
Bid-to-cover ratio3.20
Indirect bidders accepted$11,557,885,000
Direct bidders accepted$5,464,000,000
Primary dealers accepted$11,958,000,000
Indirect bidders' share, % (ours)39.9
Direct bidders' share, % (ours)18.9
Primary dealers' share, % (ours)41.3
High minus median, basis points (ours)2.5
Treasury par yield curve, 7-year point, same day, %1.38
High yield minus that point, basis points (ours)3.5

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 ratio3.20Last 24 auctions1 of 2423 of 242.84
Bid-to-cover ratio3.20All 33 since 26 February 20091 of 3332 of 332.78
High yield1.415Last 24 auctions24 of 240 of 242.644
High yield1.415Since 26 February 200933 of 330 of 332.748
High yield1.415All 82 since 6 February 198082 of 820 of 827.170
Indirect bidders' share39.9Last 24 auctions20 of 244 of 2449.5
Indirect bidders' share39.9All 33 since 26 February 200925 of 338 of 3349.7
Direct bidders' share18.9Last 24 auctions0 of 2424 of 249.1
Direct bidders' share18.9All 33 since 26 February 20090 of 3333 of 338.1
Primary dealers' share41.3Last 24 auctions14 of 2410 of 2442.3
Primary dealers' share41.3All 33 since 26 February 200918 of 3315 of 3342.2
High minus median, basis points2.5Last 24 auctions24 of 240 of 245.8
High minus median, basis points2.5Since 26 February 200933 of 330 of 336.4
High minus median, basis points2.5All 82 since 6 February 198052 of 8230 of 823.0

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 23 November 2011. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2011/R_20111123_1.pdf. Compiled by 500metrics, "7-year note auction of 23 November 2011 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2011-11-23.

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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