500metrics

All sources checked Checked

7-year note auction of 19 December 2012 (new issue)

The 7-year note sold $29 billion at a high yield of 1.233% on , with a bid-to-cover ratio of 2.72.

Coupon
1.125%
Announced
Issued
Matures

High yield

1.233%

Median yield 1.200%

Bid-to-cover

2.72

▼ −0.09 since 29 Nov

Sold

$29.00 billion

$29 billion offered

Indirect bidders

39.9%

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 28 January 2010 to 19 December 2012; the latest at 1.233%.0.0%1.0%2.0%3.0%4.0%201020112012This auction, 1.233%High yield at the last 36 7-year note auctions36 auctions from 28 January 2010 to 19 December 2012; the latest at 1.233%.0.5%1.0%1.5%2.0%2.5%3.0%201120121.233%

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
1.2332.72
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.722.726 of 125 of 12
High yield1.2331.2356 of 126 of 12
Indirect bidders' share39.940.56 of 126 of 12
Direct bidders' share23.116.30 of 1212 of 12
Primary dealers' share37.044.012 of 120 of 12
High minus median, basis points3.34.29 of 123 of 12

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

  • Direct bidders' share: Highest of all 46 earlier 7-year note auctions we hold.
  • Primary dealers' share: Lowest for a 7-year note since 29 December 2010 (23 auctions in between).

Who bought the 7-year note?

Indirect bidders took 39.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 29 November 2012

Indirect bidders took 39.9% of the competitive bids acceptedIndirect bidders 39.9%, Direct bidders 23.1%, Primary dealers 37.0%Indirect bidders39.9%39.1%Direct bidders23.1%19.7%Primary dealers37.0%41.2%Indirect bidders took 39.9% of the competitive bids acceptedIndirect bidders 39.9%, Direct bidders 23.1%, Primary dealers 37.0%Indirect bidders39.9%39.1%Direct bidders23.1%19.7%Primary dealers37.0%41.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders39.939.1
Direct bidders23.119.7
Primary dealers37.041.2

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$78,831,193,400
Sold$29,000,003,400
Competitive bids accepted$28,971,710,000
Non-competitive bids accepted$28,293,400
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.233
Median rate, %1.200
Low rate, %1.149
Interest rate (coupon), %1.125
Bids at the high rate filled, %92.81
Bid-to-cover ratio2.72
Indirect bidders accepted$11,557,710,000
Direct bidders accepted$6,694,000,000
Primary dealers accepted$10,720,000,000
Indirect bidders' share, % (ours)39.9
Direct bidders' share, % (ours)23.1
Primary dealers' share, % (ours)37.0
High minus median, basis points (ours)3.3
Treasury par yield curve, 7-year point, same day, %1.24
High yield minus that point, basis points (ours)-0.7

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 ratio2.72Last 24 auctions14 of 249 of 242.78
Bid-to-cover ratio2.72All 46 since 26 February 200927 of 4617 of 462.77
High yield1.233Last 24 auctions18 of 246 of 241.463
High yield1.233Since 26 February 200940 of 466 of 462.412
High yield1.233All 95 since 6 February 198089 of 956 of 956.050
Indirect bidders' share39.9Last 24 auctions13 of 2411 of 2441.7
Indirect bidders' share39.9All 46 since 26 February 200931 of 4615 of 4642.5
Direct bidders' share23.1Last 24 auctions0 of 2424 of 2412.4
Direct bidders' share23.1All 46 since 26 February 20090 of 4646 of 469.1
Primary dealers' share37.0Last 24 auctions23 of 241 of 2444.0
Primary dealers' share37.0All 46 since 26 February 200937 of 469 of 4643.7
High minus median, basis points3.3Last 24 auctions19 of 245 of 244.8
High minus median, basis points3.3Since 26 February 200938 of 468 of 465.8
High minus median, basis points3.3All 95 since 6 February 198047 of 9548 of 953.2

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 19 December 2012. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20121219_1.pdf. Compiled by 500metrics, "7-year note auction of 19 December 2012 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2012-12-19.

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.