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7-year note auction of 29 November 2012 (new issue)

The 7-year note sold $29 billion at a high yield of 1.045% on , with a bid-to-cover ratio of 2.81.

Coupon
1.000%
Announced
Issued
Matures

High yield

1.045%

Median yield 1.009%

Bid-to-cover

2.81

▲ +0.25 since 25 Oct

Sold

$29.00 billion

$29 billion offered

Indirect bidders

39.1%

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 30 December 2009 to 29 November 2012; the latest at 1.045%.0.0%1.0%2.0%3.0%4.0%201020112012This auction, 1.045%High yield at the last 36 7-year note auctions36 auctions from 30 December 2009 to 29 November 2012; the latest at 1.045%.0.5%1.0%1.5%2.0%2.5%3.0%201120121.045%

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
1.0452.81
1.2672.56
1.0552.61
1.0812.80
0.9542.64
1.0752.64
1.2032.80
1.3472.83
1.5902.72
1.4183.11
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.812.723 of 129 of 12
High yield1.0451.30711 of 121 of 12
Indirect bidders' share39.140.97 of 125 of 12
Direct bidders' share19.716.30 of 1212 of 12
Primary dealers' share41.244.011 of 121 of 12
High minus median, basis points3.64.28 of 124 of 12

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

  • Direct bidders' share: Highest of all 45 earlier 7-year note auctions we hold.

Who bought the 7-year note?

Primary dealers took 41.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 October 2012

Primary dealers took 41.2% of the competitive bids acceptedIndirect bidders 39.1%, Direct bidders 19.7%, Primary dealers 41.2%Indirect bidders39.1%38.2%Direct bidders19.7%18.0%Primary dealers41.2%43.7%Primary dealers took 41.2% of the competitive bids acceptedIndirect bidders 39.1%, Direct bidders 19.7%, Primary dealers 41.2%Indirect bidders39.1%38.2%Direct bidders19.7%18.0%Primary dealers41.2%43.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders39.138.2
Direct bidders19.718.0
Primary dealers41.243.7

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$81,383,490,700
Sold$29,000,055,100
Competitive bids accepted$28,989,464,400
Non-competitive bids accepted$10,590,700
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.045
Median rate, %1.009
Low rate, %0.957
Interest rate (coupon), %1.000
Bids at the high rate filled, %99.60
Bid-to-cover ratio2.81
Indirect bidders accepted$11,329,724,400
Direct bidders accepted$5,712,960,000
Primary dealers accepted$11,946,780,000
Indirect bidders' share, % (ours)39.1
Direct bidders' share, % (ours)19.7
Primary dealers' share, % (ours)41.2
High minus median, basis points (ours)3.6
Treasury par yield curve, 7-year point, same day, %1.04
High yield minus that point, basis points (ours)0.5

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 ratio2.81Last 24 auctions8 of 2416 of 242.74
Bid-to-cover ratio2.81All 45 since 26 February 200917 of 4528 of 452.76
High yield1.045Last 24 auctions23 of 241 of 241.538
High yield1.045Since 26 February 200944 of 451 of 452.429
High yield1.045All 94 since 6 February 198093 of 941 of 946.230
Indirect bidders' share39.1Last 24 auctions17 of 247 of 2441.9
Indirect bidders' share39.1All 45 since 26 February 200934 of 4511 of 4542.7
Direct bidders' share19.7Last 24 auctions0 of 2424 of 2411.9
Direct bidders' share19.7All 45 since 26 February 20090 of 4545 of 459.0
Primary dealers' share41.2Last 24 auctions20 of 244 of 2444.4
Primary dealers' share41.2All 45 since 26 February 200929 of 4516 of 4543.8
High minus median, basis points3.6Last 24 auctions19 of 245 of 245.4
High minus median, basis points3.6Since 26 February 200937 of 458 of 455.8
High minus median, basis points3.6All 94 since 6 February 198046 of 9448 of 943.2

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 November 2012. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20121129_1.pdf. Compiled by 500metrics, "7-year note auction of 29 November 2012 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2012-11-29.

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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