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7-year note auction of 26 September 2013 (new issue)

The 7-year note sold $29 billion at a high yield of 2.058% on , with a bid-to-cover ratio of 2.46.

Coupon
2.000%
Announced
Issued
Matures

High yield

2.058%

Median yield 2.017%

Bid-to-cover

2.46

▼ −0.21 since 25 Sep

Sold

$29.00 billion

$29 billion offered

Indirect bidders

42.0%

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 29 December 2010 to 26 September 2013; the latest at 2.058%.0.5%1.0%1.5%2.0%2.5%3.0%201120122013This auction, 2.058%High yield at the last 36 7-year note auctions36 auctions from 29 December 2010 to 26 September 2013; the latest at 2.058%.0.5%1.0%1.5%2.0%2.5%201220132.058%

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
2.0582.46
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.462.6310 of 122 of 12
High yield2.0581.4261 of 1211 of 12
Indirect bidders' share42.040.13 of 129 of 12
Direct bidders' share17.819.68 of 124 of 12
Primary dealers' share40.241.17 of 125 of 12
High minus median, basis points4.13.62 of 1210 of 12

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

Who bought the 7-year note?

Indirect bidders took 42.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 September 2013

Indirect bidders took 42.0% of the competitive bids acceptedIndirect bidders 42.0%, Direct bidders 17.8%, Primary dealers 40.2%Indirect bidders42.0%44.9%Direct bidders17.8%11.8%Primary dealers40.2%43.4%Indirect bidders took 42.0% of the competitive bids acceptedIndirect bidders 42.0%, Direct bidders 17.8%, Primary dealers 40.2%Indirect bidders42.0%44.9%Direct bidders17.8%11.8%Primary dealers40.2%43.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders42.044.9
Direct bidders17.811.8
Primary dealers40.243.4

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$71,384,627,300
Sold$29,000,000,900
Competitive bids accepted$28,969,973,600
Non-competitive bids accepted$15,027,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$15,000,000
High yield, %2.058
Median rate, %2.017
Low rate, %1.950
Interest rate (coupon), %2.000
Bids at the high rate filled, %9.87
Bid-to-cover ratio2.46
Indirect bidders accepted$12,165,233,600
Direct bidders accepted$5,156,000,000
Primary dealers accepted$11,648,740,000
Indirect bidders' share, % (ours)42.0
Direct bidders' share, % (ours)17.8
Primary dealers' share, % (ours)40.2
High minus median, basis points (ours)4.1
Treasury par yield curve, 7-year point, same day, %2.05
High yield minus that point, basis points (ours)0.8

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 ratio2.46Last 24 auctions22 of 242 of 242.68
Bid-to-cover ratio2.46All 57 since 26 February 200952 of 575 of 572.72
High yield2.058Last 24 auctions1 of 2423 of 241.353
High yield2.058Since 26 February 200928 of 5729 of 572.026
High yield2.058All 106 since 6 February 198077 of 10629 of 1063.314
Indirect bidders' share42.0Last 24 auctions8 of 2416 of 2440.1
Indirect bidders' share42.0All 57 since 26 February 200930 of 5727 of 5742.0
Direct bidders' share17.8Last 24 auctions12 of 2412 of 2417.8
Direct bidders' share17.8All 57 since 26 February 200912 of 5745 of 5711.8
Primary dealers' share40.2Last 24 auctions18 of 246 of 2443.5
Primary dealers' share40.2All 57 since 26 February 200937 of 5720 of 5742.4
High minus median, basis points4.1Last 24 auctions8 of 2416 of 243.8
High minus median, basis points4.1Since 26 February 200933 of 5724 of 574.5
High minus median, basis points4.1All 106 since 6 February 198038 of 10668 of 1063.6

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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 September 2013. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2013/R_20130926_1.pdf. Compiled by 500metrics, "7-year note auction of 26 September 2013 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2013-09-26.

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

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