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7-year note auction of 27 February 2014 (new issue)

The 7-year note sold $29.081 billion at a high yield of 2.105% on , with a bid-to-cover ratio of 2.72.

Coupon
2.000%
Announced
Issued
Matures

High yield

2.105%

Median yield 2.073%

Bid-to-cover

2.72

▲ +0.07 since 30 Jan

Sold

$29.08 billion

$29 billion offered

Indirect bidders

41.1%

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 26 May 2011 to 27 February 2014; the latest at 2.105%.0.5%1.0%1.5%2.0%2.5%2011201220132014This auction, 2.105%High yield at the last 36 7-year note auctions36 auctions from 26 May 2011 to 27 February 2014; the latest at 2.105%.0.5%1.0%1.5%2.0%2.5%2012201320142.105%

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
2.1052.72
2.1902.65
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.722.580 of 1212 of 12
High yield2.1051.9794 of 128 of 12
Indirect bidders' share41.141.97 of 125 of 12
Direct bidders' share24.617.40 of 1212 of 12
Primary dealers' share34.339.310 of 122 of 12
High minus median, basis points3.23.69 of 123 of 12

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

  • Bid-to-cover ratio: Highest for a 7-year note since 19 December 2012 (15 auctions in between).
  • Direct bidders' share: Highest of all 62 earlier 7-year note auctions we hold.

Who bought the 7-year note?

Indirect bidders took 41.1% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 30 January 2014

Indirect bidders took 41.1% of the competitive bids acceptedIndirect bidders 41.1%, Direct bidders 24.6%, Primary dealers 34.3%Indirect bidders41.1%47.8%Direct bidders24.6%19.9%Primary dealers34.3%32.3%Indirect bidders took 41.1% of the competitive bids acceptedIndirect bidders 41.1%, Direct bidders 24.6%, Primary dealers 34.3%Indirect bidders41.1%47.8%Direct bidders24.6%19.9%Primary dealers34.3%32.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders41.147.8
Direct bidders24.619.9
Primary dealers34.332.3

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$79,038,827,700
Sold$29,081,483,200
Competitive bids accepted$28,944,655,500
Non-competitive bids accepted$40,358,000
Federal Reserve (SOMA) add-on$81,469,700
Foreign and international (FIMA) non-competitive$15,000,000
High yield, %2.105
Median rate, %2.073
Low rate, %2.000
Interest rate (coupon), %2.000
Bids at the high rate filled, %82.51
Bid-to-cover ratio2.72
Indirect bidders accepted$11,902,000,000
Direct bidders accepted$7,121,000,000
Primary dealers accepted$9,921,655,500
Indirect bidders' share, % (ours)41.1
Direct bidders' share, % (ours)24.6
Primary dealers' share, % (ours)34.3
High minus median, basis points (ours)3.2
Treasury par yield curve, 7-year point, same day, %2.11
High yield minus that point, basis points (ours)-0.5

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 ratio2.72Last 24 auctions4 of 2419 of 242.64
Bid-to-cover ratio2.72All 62 since 26 February 200927 of 6232 of 622.70
High yield2.105Last 24 auctions4 of 2420 of 241.382
High yield2.105Since 26 February 200931 of 6231 of 622.082
High yield2.105All 111 since 6 February 198080 of 11131 of 1113.141
Indirect bidders' share41.1Last 24 auctions10 of 2414 of 2440.6
Indirect bidders' share41.1All 62 since 26 February 200937 of 6225 of 6242.0
Direct bidders' share24.6Last 24 auctions0 of 2424 of 2417.8
Direct bidders' share24.6All 62 since 26 February 20090 of 6262 of 6211.9
Primary dealers' share34.3Last 24 auctions22 of 242 of 2441.8
Primary dealers' share34.3All 62 since 26 February 200955 of 627 of 6242.1
High minus median, basis points3.2Last 24 auctions19 of 244 of 243.8
High minus median, basis points3.2Since 26 February 200951 of 6210 of 624.4
High minus median, basis points3.2All 111 since 6 February 198060 of 11150 of 1113.6

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 February 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140227_1.pdf. Compiled by 500metrics, "7-year note auction of 27 February 2014 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2014-02-27.

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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