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7-year note auction of 25 September 2013 (reopening)

The 7-year note sold $35 billion at a high yield of 1.436% on , with a bid-to-cover ratio of 2.67.

Coupon
1.375%
Announced
Issued
Matures

High yield

1.436%

Median yield 1.398%

Bid-to-cover

2.67

▲ +0.24 since 29 Aug

Sold

$35.00 billion

$35 billion offered

Indirect bidders

44.9%

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 24 November 2010 to 25 September 2013; the latest at 1.436%.0.5%1.0%1.5%2.0%2.5%3.0%201120122013This auction, 1.436%High yield at the last 36 7-year note auctions36 auctions from 24 November 2010 to 25 September 2013; the latest at 1.436%.0.5%1.0%1.5%2.0%2.5%201220131.436%

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
1.4362.67
2.2212.43
1.6242.38
2.0262.54
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.672.604 of 128 of 12
High yield1.4361.3425 of 127 of 12
Indirect bidders' share44.939.62 of 1210 of 12
Direct bidders' share11.819.612 of 120 of 12
Primary dealers' share43.441.14 of 128 of 12
High minus median, basis points3.83.64 of 128 of 12

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

  • Direct bidders' share: Lowest for a 7-year note since 26 July 2012 (14 auctions in between).

Who bought the 7-year note?

Indirect bidders took 44.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 29 August 2013

Indirect bidders took 44.9% of the competitive bids acceptedIndirect bidders 44.9%, Direct bidders 11.8%, Primary dealers 43.4%Indirect bidders44.9%40.8%Direct bidders11.8%22.4%Primary dealers43.4%36.8%Indirect bidders took 44.9% of the competitive bids acceptedIndirect bidders 44.9%, Direct bidders 11.8%, Primary dealers 43.4%Indirect bidders44.9%40.8%Direct bidders11.8%22.4%Primary dealers43.4%36.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders44.940.8
Direct bidders11.822.4
Primary dealers43.436.8

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as5-Year, reopening
Offering amount$35,000,000,000
Bids received$93,499,692,300
Sold$35,000,017,300
Competitive bids accepted$34,967,525,000
Non-competitive bids accepted$32,492,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.436
Median rate, %1.398
Low rate, %1.300
Interest rate (coupon), %1.375
Bids at the high rate filled, %43.73
Bid-to-cover ratio2.67
Indirect bidders accepted$15,683,200,000
Direct bidders accepted$4,117,000,000
Primary dealers accepted$15,167,325,000
Indirect bidders' share, % (ours)44.9
Direct bidders' share, % (ours)11.8
Primary dealers' share, % (ours)43.4
High minus median, basis points (ours)3.8
Treasury par yield curve, 5-year point, same day, %1.41
High yield minus that point, basis points (ours)2.6

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 (5-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 ratio2.67Last 24 auctions12 of 2412 of 242.66
Bid-to-cover ratio2.67All 56 since 26 February 200933 of 5623 of 562.72
High yield1.436Last 24 auctions7 of 2417 of 241.353
High yield1.436Since 26 February 200939 of 5617 of 562.124
High yield1.436All 105 since 6 February 198088 of 10517 of 1053.329
Indirect bidders' share44.9Last 24 auctions3 of 2421 of 2439.9
Indirect bidders' share44.9All 56 since 26 February 200922 of 5634 of 5642.0
Direct bidders' share11.8Last 24 auctions21 of 243 of 2417.8
Direct bidders' share11.8All 56 since 26 February 200927 of 5629 of 5611.7
Primary dealers' share43.4Last 24 auctions13 of 2411 of 2443.7
Primary dealers' share43.4All 56 since 26 February 200927 of 5629 of 5642.3
High minus median, basis points3.8Last 24 auctions12 of 2412 of 243.8
High minus median, basis points3.8Since 26 February 200939 of 5617 of 564.6
High minus median, basis points3.8All 105 since 6 February 198048 of 10557 of 1053.5

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 25 September 2013. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2013/R_20130925_1.pdf. Compiled by 500metrics, "7-year note auction of 25 September 2013 (reopening)", https://500metrics.com/treasury/auctions/7-year-note/2013-09-25.

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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