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7-year note auction of 27 June 2013 (new issue)

The 7-year note sold $29 billion at a high yield of 1.932% on , with a bid-to-cover ratio of 2.61.

Coupon
1.875%
Announced
Issued
Matures

High yield

1.932%

Median yield 1.898%

Bid-to-cover

2.61

▼ −0.09 since 30 May

Sold

$29.00 billion

$29 billion offered

Indirect bidders

46.4%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 28 July 2011

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 28 July 201136 auctions from 29 July 2010 to 27 June 2013; the latest at 1.932%.0.5%1.0%1.5%2.0%2.5%3.0%2010201120122013This auction, 1.932%The high yield was the highest for a 7-year note since 28 July 201136 auctions from 29 July 2010 to 27 June 2013; the latest at 1.932%.0.5%1.0%1.5%2.0%2.5%2011201220131.932%

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
1.9322.61
1.4962.70
1.1552.71
1.2482.56
1.2602.65
1.4162.60
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.612.648 of 123 of 12
High yield1.9321.1940 of 1212 of 12
Indirect bidders' share46.438.70 of 1212 of 12
Direct bidders' share15.718.910 of 122 of 12
Primary dealers' share37.843.711 of 121 of 12
High minus median, basis points3.43.88 of 124 of 12

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

  • Indirect bidders' share: Highest for a 7-year note since 25 August 2011 (21 auctions in between).

Who bought the 7-year note?

Indirect bidders took 46.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 30 May 2013

Indirect bidders took 46.4% of the competitive bids acceptedIndirect bidders 46.4%, Direct bidders 15.7%, Primary dealers 37.8%Indirect bidders46.4%40.8%Direct bidders15.7%20.7%Primary dealers37.8%38.5%Indirect bidders took 46.4% of the competitive bids acceptedIndirect bidders 46.4%, Direct bidders 15.7%, Primary dealers 37.8%Indirect bidders46.4%40.8%Direct bidders15.7%20.7%Primary dealers37.8%38.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders46.440.8
Direct bidders15.720.7
Primary dealers37.838.5

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$75,782,868,200
Sold$29,000,017,500
Competitive bids accepted$28,987,299,300
Non-competitive bids accepted$12,718,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.932
Median rate, %1.898
Low rate, %1.835
Interest rate (coupon), %1.875
Bids at the high rate filled, %2.95
Bid-to-cover ratio2.61
Indirect bidders accepted$13,460,299,300
Direct bidders accepted$4,557,000,000
Primary dealers accepted$10,970,000,000
Indirect bidders' share, % (ours)46.4
Direct bidders' share, % (ours)15.7
Primary dealers' share, % (ours)37.8
High minus median, basis points (ours)3.4
Treasury par yield curve, 7-year point, same day, %1.91
High yield minus that point, basis points (ours)2.2

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 ratio2.61Last 24 auctions19 of 244 of 242.70
Bid-to-cover ratio2.61All 52 since 26 February 200942 of 528 of 522.74
High yield1.932Last 24 auctions2 of 2422 of 241.353
High yield1.932Since 26 February 200929 of 5223 of 522.266
High yield1.932All 101 since 6 February 198078 of 10123 of 1013.369
Indirect bidders' share46.4Last 24 auctions1 of 2423 of 2439.4
Indirect bidders' share46.4All 52 since 26 February 200919 of 5233 of 5242.0
Direct bidders' share15.7Last 24 auctions13 of 2411 of 2417.3
Direct bidders' share15.7All 52 since 26 February 200914 of 5238 of 5210.6
Primary dealers' share37.8Last 24 auctions23 of 241 of 2444.0
Primary dealers' share37.8All 52 since 26 February 200939 of 5213 of 5243.1
High minus median, basis points3.4Last 24 auctions18 of 246 of 244.4
High minus median, basis points3.4Since 26 February 200942 of 5210 of 525.3
High minus median, basis points3.4All 101 since 6 February 198051 of 10150 of 1013.5

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 27 June 2013. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2013/R_20130627_1.pdf. Compiled by 500metrics, "7-year note auction of 27 June 2013 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2013-06-27.

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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