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7-year note auction of 24 April 2014 (new issue)

The 7-year note sold $29 billion at a high yield of 2.317% on , with a bid-to-cover ratio of 2.60.

Coupon
2.250%
Announced
Issued
Matures

High yield

2.317%

Median yield 2.278%

Bid-to-cover

2.60

▲ +0.01 since 27 Mar

Sold

$29.00 billion

$29 billion offered

Indirect bidders

49.9%

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 28 July 2011 to 24 April 2014; the latest at 2.317%.0.5%1.0%1.5%2.0%2.5%2011201220132014This auction, 2.317%High yield at the last 36 7-year note auctions36 auctions from 28 July 2011 to 24 April 2014; the latest at 2.317%.0.5%1.0%1.5%2.0%2.5%2012201320142.317%

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
2.3172.60
2.2582.59
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.602.565 of 127 of 12
High yield2.3172.0821 of 1211 of 12
Indirect bidders' share49.941.90 of 1212 of 12
Direct bidders' share19.117.45 of 127 of 12
Primary dealers' share31.037.311 of 121 of 12
High minus median, basis points3.93.53 of 129 of 12

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

  • Indirect bidders' share: Highest for a 7-year note since 25 August 2011 (33 auctions in between).

Who bought the 7-year note?

Indirect bidders took 49.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 March 2014

Indirect bidders took 49.9% of the competitive bids acceptedIndirect bidders 49.9%, Direct bidders 19.1%, Primary dealers 31.0%Indirect bidders49.9%41.4%Direct bidders19.1%32.6%Primary dealers31.0%26.0%Indirect bidders took 49.9% of the competitive bids acceptedIndirect bidders 49.9%, Direct bidders 19.1%, Primary dealers 31.0%Indirect bidders49.9%41.4%Direct bidders19.1%32.6%Primary dealers31.0%26.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders49.941.4
Direct bidders19.132.6
Primary dealers31.026.0

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$75,369,440,700
Sold$29,000,021,700
Competitive bids accepted$28,978,881,000
Non-competitive bids accepted$21,140,700
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.317
Median rate, %2.278
Low rate, %2.210
Interest rate (coupon), %2.250
Bids at the high rate filled, %47.26
Bid-to-cover ratio2.60
Indirect bidders accepted$14,462,300,000
Direct bidders accepted$5,531,000,000
Primary dealers accepted$8,985,581,000
Indirect bidders' share, % (ours)49.9
Direct bidders' share, % (ours)19.1
Primary dealers' share, % (ours)31.0
High minus median, basis points (ours)3.9
Treasury par yield curve, 7-year point, same day, %2.30
High yield minus that point, basis points (ours)1.7

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 ratio2.60Last 24 auctions14 of 249 of 242.62
Bid-to-cover ratio2.60All 64 since 26 February 200949 of 6414 of 642.70
High yield2.317Last 24 auctions1 of 2423 of 241.466
High yield2.317Since 26 February 200926 of 6438 of 642.106
High yield2.317All 113 since 6 February 198075 of 11338 of 1133.127
Indirect bidders' share49.9Last 24 auctions0 of 2424 of 2440.8
Indirect bidders' share49.9All 64 since 26 February 200916 of 6448 of 6442.0
Direct bidders' share19.1Last 24 auctions11 of 2413 of 2418.1
Direct bidders' share19.1All 64 since 26 February 200912 of 6452 of 6412.1
Primary dealers' share31.0Last 24 auctions23 of 241 of 2441.2
Primary dealers' share31.0All 64 since 26 February 200960 of 644 of 6441.9
High minus median, basis points3.9Last 24 auctions9 of 2415 of 243.6
High minus median, basis points3.9Since 26 February 200941 of 6422 of 644.4
High minus median, basis points3.9All 113 since 6 February 198050 of 11362 of 1133.5

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 24 April 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140424_1.pdf. Compiled by 500metrics, "7-year note auction of 24 April 2014 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2014-04-24.

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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