500metrics

All sources checked Checked

7-year note auction of 26 January 2012 (new issue)

The 7-year note sold $29.546 billion at a high yield of 1.359% on , with a bid-to-cover ratio of 2.73.

Coupon
1.250%
Announced
Issued
Matures

High yield

1.359%

Median yield 1.290%

Bid-to-cover

2.73

▲ +0.05 since 21 Dec

Sold

$29.55 billion

$29 billion offered

Indirect bidders

31.8%

Of competitive bids accepted

The high yield was the lowest for a 7-year note of all 84 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 84 earlier auctions we hold36 auctions from 26 February 2009 to 26 January 2012; the latest at 1.359%.1.0%2.0%3.0%4.0%2009201020112012This auction, 1.359%The high yield was the lowest for a 7-year note of all 84 earlier auctions we hold36 auctions from 26 February 2009 to 26 January 2012; the latest at 1.359%.1.0%2.0%3.0%4.0%2010201120121.359%

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
1.3592.73
1.4302.68
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.732.787 of 125 of 12
High yield1.3592.35412 of 120 of 12
Indirect bidders' share31.841.812 of 120 of 12
Direct bidders' share11.610.56 of 126 of 12
Primary dealers' share56.644.90 of 1212 of 12
High minus median, basis points6.95.84 of 128 of 12

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

  • Indirect bidders' share: Lowest for a 7-year note since 26 March 2009 (33 auctions in between).
  • Primary dealers' share: Highest for a 7-year note since 28 May 2009 (31 auctions in between).

Who bought the 7-year note?

Primary dealers took 56.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 21 December 2011

Primary dealers took 56.6% of the competitive bids acceptedIndirect bidders 31.8%, Direct bidders 11.6%, Primary dealers 56.6%Indirect bidders31.8%42.0%Direct bidders11.6%12.9%Primary dealers56.6%45.0%Primary dealers took 56.6% of the competitive bids acceptedIndirect bidders 31.8%, Direct bidders 11.6%, Primary dealers 56.6%Indirect bidders31.8%42.0%Direct bidders11.6%12.9%Primary dealers56.6%45.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders31.842.0
Direct bidders11.612.9
Primary dealers56.645.0

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$79,852,719,100
Sold$29,545,749,100
Competitive bids accepted$28,974,030,000
Non-competitive bids accepted$26,004,600
Federal Reserve (SOMA) add-on$545,714,500
Foreign and international (FIMA) non-competitive$0
High yield, %1.359
Median rate, %1.290
Low rate, %1.197
Interest rate (coupon), %1.250
Bids at the high rate filled, %77.18
Bid-to-cover ratio2.73
Indirect bidders accepted$9,205,000,000
Direct bidders accepted$3,357,590,000
Primary dealers accepted$16,411,440,000
Indirect bidders' share, % (ours)31.8
Direct bidders' share, % (ours)11.6
Primary dealers' share, % (ours)56.6
High minus median, basis points (ours)6.9
Treasury par yield curve, 7-year point, same day, %1.34
High yield minus that point, basis points (ours)1.9

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 ratio2.73Last 24 auctions17 of 247 of 242.85
Bid-to-cover ratio2.73All 35 since 26 February 200921 of 3514 of 352.78
High yield1.359Last 24 auctions24 of 240 of 242.430
High yield1.359Since 26 February 200935 of 350 of 352.744
High yield1.359All 84 since 6 February 198084 of 840 of 847.120
Indirect bidders' share31.8Last 24 auctions24 of 240 of 2448.5
Indirect bidders' share31.8All 35 since 26 February 200934 of 351 of 3549.4
Direct bidders' share11.6Last 24 auctions10 of 2414 of 249.5
Direct bidders' share11.6All 35 since 26 February 200910 of 3525 of 358.5
Primary dealers' share56.6Last 24 auctions0 of 2424 of 2442.3
Primary dealers' share56.6All 35 since 26 February 20094 of 3531 of 3542.2
High minus median, basis points6.9Last 24 auctions6 of 2418 of 245.8
High minus median, basis points6.9Since 26 February 200914 of 3521 of 356.4
High minus median, basis points6.9All 84 since 6 February 198016 of 8468 of 843.0

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 January 2012. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20120126_1.pdf. Compiled by 500metrics, "7-year note auction of 26 January 2012 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2012-01-26.

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

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