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7-year note auction of 19 December 2013 (new issue)

The 7-year note sold $29 billion at a high yield of 2.385% on , with a bid-to-cover ratio of 2.45.

Coupon
2.375%
Announced
Issued
Matures

High yield

2.385%

Median yield 2.338%

Bid-to-cover

2.45

▲ +0.09 since 27 Nov

Sold

$29.00 billion

$29 billion offered

Indirect bidders

41.7%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 29 June 2011

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 29 June 201136 auctions from 30 March 2011 to 19 December 2013; the latest at 2.385%.0.5%1.0%1.5%2.0%2.5%3.0%201120122013This auction, 2.385%The high yield was the highest for a 7-year note since 29 June 201136 auctions from 30 March 2011 to 19 December 2013; the latest at 2.385%.0.5%1.0%1.5%2.0%2.5%201220132.385%

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
2.3852.45
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.452.589 of 123 of 12
High yield2.3851.7470 of 1212 of 12
Indirect bidders' share41.740.85 of 127 of 12
Direct bidders' share17.118.07 of 125 of 12
Primary dealers' share41.240.65 of 127 of 12
High minus median, basis points4.73.60 of 1211 of 12

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

Who bought the 7-year note?

Indirect bidders took 41.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 November 2013

Indirect bidders took 41.7% of the competitive bids acceptedIndirect bidders 41.7%, Direct bidders 17.1%, Primary dealers 41.2%Indirect bidders41.7%34.1%Direct bidders17.1%16.1%Primary dealers41.2%49.8%Indirect bidders took 41.7% of the competitive bids acceptedIndirect bidders 41.7%, Direct bidders 17.1%, Primary dealers 41.2%Indirect bidders41.7%34.1%Direct bidders17.1%16.1%Primary dealers41.2%49.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders41.734.1
Direct bidders17.116.1
Primary dealers41.249.8

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$71,021,354,900
Sold$29,000,005,700
Competitive bids accepted$28,985,000,800
Non-competitive bids accepted$15,004,900
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.385
Median rate, %2.338
Low rate, %2.270
Interest rate (coupon), %2.375
Bids at the high rate filled, %59.56
Bid-to-cover ratio2.45
Indirect bidders accepted$12,098,530,800
Direct bidders accepted$4,945,000,000
Primary dealers accepted$11,941,470,000
Indirect bidders' share, % (ours)41.7
Direct bidders' share, % (ours)17.1
Primary dealers' share, % (ours)41.2
High minus median, basis points (ours)4.7
Treasury par yield curve, 7-year point, same day, %2.35
High yield minus that point, basis points (ours)3.5

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 ratio2.45Last 24 auctions21 of 243 of 242.64
Bid-to-cover ratio2.45All 60 since 26 February 200954 of 606 of 602.72
High yield2.385Last 24 auctions0 of 2424 of 241.382
High yield2.385Since 26 February 200924 of 6036 of 602.042
High yield2.385All 109 since 6 February 198073 of 10936 of 1093.210
Indirect bidders' share41.7Last 24 auctions10 of 2414 of 2440.6
Indirect bidders' share41.7All 60 since 26 February 200934 of 6026 of 6042.0
Direct bidders' share17.1Last 24 auctions14 of 2410 of 2417.8
Direct bidders' share17.1All 60 since 26 February 200916 of 6044 of 6011.8
Primary dealers' share41.2Last 24 auctions15 of 249 of 2442.7
Primary dealers' share41.2All 60 since 26 February 200936 of 6024 of 6042.3
High minus median, basis points4.7Last 24 auctions3 of 2420 of 243.8
High minus median, basis points4.7Since 26 February 200928 of 6031 of 604.4
High minus median, basis points4.7All 109 since 6 February 198033 of 10975 of 1093.6

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 19 December 2013. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2013/R_20131219_2.pdf. Compiled by 500metrics, "7-year note auction of 19 December 2013 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2013-12-19.

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

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