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

The 7-year note sold $29 billion at a high yield of 2.106% on , with a bid-to-cover ratio of 2.36.

Coupon
2.000%
Announced
Issued
Matures

High yield

2.106%

Median yield 2.059%

Bid-to-cover

2.36

▼ −0.30 since 30 Oct

Sold

$29.00 billion

$29 billion offered

Indirect bidders

34.1%

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 24 February 2011 to 27 November 2013; the latest at 2.106%.0.5%1.0%1.5%2.0%2.5%3.0%201120122013This auction, 2.106%High yield at the last 36 7-year note auctions36 auctions from 24 February 2011 to 27 November 2013; the latest at 2.106%.0.5%1.0%1.5%2.0%2.5%201220132.106%

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
2.1062.36
1.8702.66
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.362.6012 of 120 of 12
High yield2.1061.5601 of 1211 of 12
Indirect bidders' share34.140.811 of 121 of 12
Direct bidders' share16.118.99 of 123 of 12
Primary dealers' share49.840.60 of 1212 of 12
High minus median, basis points4.73.61 of 1211 of 12

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

  • Bid-to-cover ratio: Lowest for a 7-year note since 28 May 2009 (55 auctions in between).
  • Primary dealers' share: Highest for a 7-year note since 28 June 2012 (18 auctions in between).

Who bought the 7-year note?

Primary dealers took 49.8% of the competitive bids accepted

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

Primary dealers took 49.8% of the competitive bids acceptedIndirect bidders 34.1%, Direct bidders 16.1%, Primary dealers 49.8%Indirect bidders34.1%42.3%Direct bidders16.1%23.9%Primary dealers49.8%33.8%Primary dealers took 49.8% of the competitive bids acceptedIndirect bidders 34.1%, Direct bidders 16.1%, Primary dealers 49.8%Indirect bidders34.1%42.3%Direct bidders16.1%23.9%Primary dealers49.8%33.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders34.142.3
Direct bidders16.123.9
Primary dealers49.833.8

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$68,490,579,800
Sold$29,000,075,800
Competitive bids accepted$28,990,096,000
Non-competitive bids accepted$9,979,800
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.106
Median rate, %2.059
Low rate, %1.995
Interest rate (coupon), %2.000
Bids at the high rate filled, %31.60
Bid-to-cover ratio2.36
Indirect bidders accepted$9,877,096,000
Direct bidders accepted$4,679,000,000
Primary dealers accepted$14,434,000,000
Indirect bidders' share, % (ours)34.1
Direct bidders' share, % (ours)16.1
Primary dealers' share, % (ours)49.8
High minus median, basis points (ours)4.7
Treasury par yield curve, 7-year point, same day, %2.08
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 (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 ratio2.36Last 24 auctions24 of 240 of 242.66
Bid-to-cover ratio2.36All 59 since 26 February 200956 of 593 of 592.72
High yield2.106Last 24 auctions1 of 2423 of 241.353
High yield2.106Since 26 February 200928 of 5931 of 592.026
High yield2.106All 108 since 6 February 198077 of 10831 of 1083.255
Indirect bidders' share34.1Last 24 auctions22 of 242 of 2440.6
Indirect bidders' share34.1All 59 since 26 February 200952 of 597 of 5942.0
Direct bidders' share16.1Last 24 auctions16 of 248 of 2417.8
Direct bidders' share16.1All 59 since 26 February 200918 of 5941 of 5911.8
Primary dealers' share49.8Last 24 auctions2 of 2422 of 2442.7
Primary dealers' share49.8All 59 since 26 February 200911 of 5948 of 5942.2
High minus median, basis points4.7Last 24 auctions4 of 2420 of 243.8
High minus median, basis points4.7Since 26 February 200928 of 5931 of 594.4
High minus median, basis points4.7All 108 since 6 February 198033 of 10875 of 1083.6

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 November 2013. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2013/R_20131127_1.pdf. Compiled by 500metrics, "7-year note auction of 27 November 2013 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2013-11-27.

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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