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7-year note auction of 28 August 2014 (new issue)

The 7-year note sold $29.001 billion at a high yield of 2.045% on , with a bid-to-cover ratio of 2.57.

Coupon
2.000%
Announced
Issued
Matures

High yield

2.045%

Median yield 2.000%

Bid-to-cover

2.57

▼ −0.01 since 30 Jul

Sold

$29.00 billion

$29 billion offered

Indirect bidders

48.8%

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 23 November 2011 to 28 August 2014; the latest at 2.045%.0.5%1.0%1.5%2.0%2.5%201220132014This auction, 2.045%High yield at the last 36 7-year note auctions36 auctions from 23 November 2011 to 28 August 2014; the latest at 2.045%.1.0%1.5%2.0%2.5%201320142.045%

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
2.0452.57
2.2502.58
2.1522.44
2.0102.60
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.572.608 of 124 of 12
High yield2.0452.1299 of 123 of 12
Indirect bidders' share48.841.91 of 1211 of 12
Direct bidders' share20.418.44 of 128 of 12
Primary dealers' share30.736.511 of 121 of 12
High minus median, basis points4.54.02 of 129 of 12

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

Who bought the 7-year note?

Indirect bidders took 48.8% of the competitive bids accepted

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

Indirect bidders took 48.8% of the competitive bids acceptedIndirect bidders 48.8%, Direct bidders 20.4%, Primary dealers 30.7%Indirect bidders48.8%47.4%Direct bidders20.4%15.2%Primary dealers30.7%37.4%Indirect bidders took 48.8% of the competitive bids acceptedIndirect bidders 48.8%, Direct bidders 20.4%, Primary dealers 30.7%Indirect bidders48.8%47.4%Direct bidders20.4%15.2%Primary dealers30.7%37.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders48.847.4
Direct bidders20.415.2
Primary dealers30.737.4

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$74,541,040,200
Sold$29,001,470,200
Competitive bids accepted$28,973,630,000
Non-competitive bids accepted$26,376,700
Federal Reserve (SOMA) add-on$1,463,500
Foreign and international (FIMA) non-competitive$0
High yield, %2.045
Median rate, %2.000
Low rate, %1.950
Interest rate (coupon), %2.000
Bids at the high rate filled, %0.36
Bid-to-cover ratio2.57
Indirect bidders accepted$14,151,200,000
Direct bidders accepted$5,919,000,000
Primary dealers accepted$8,903,430,000
Indirect bidders' share, % (ours)48.8
Direct bidders' share, % (ours)20.4
Primary dealers' share, % (ours)30.7
High minus median, basis points (ours)4.5
Treasury par yield curve, 7-year point, same day, %2.04
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 ratio2.57Last 24 auctions15 of 249 of 242.60
Bid-to-cover ratio2.57All 68 since 26 February 200955 of 6813 of 682.68
High yield2.045Last 24 auctions10 of 2414 of 241.971
High yield2.045Since 26 February 200937 of 6831 of 682.129
High yield2.045All 117 since 6 February 198086 of 11731 of 1173.078
Indirect bidders' share48.8Last 24 auctions1 of 2423 of 2440.8
Indirect bidders' share48.8All 68 since 26 February 200919 of 6849 of 6842.0
Direct bidders' share20.4Last 24 auctions7 of 2417 of 2419.3
Direct bidders' share20.4All 68 since 26 February 20097 of 6861 of 6812.8
Primary dealers' share30.7Last 24 auctions23 of 241 of 2439.3
Primary dealers' share30.7All 68 since 26 February 200964 of 684 of 6841.7
High minus median, basis points4.5Last 24 auctions3 of 2420 of 243.8
High minus median, basis points4.5Since 26 February 200930 of 6836 of 684.4
High minus median, basis points4.5All 117 since 6 February 198035 of 11780 of 1173.6

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 28 August 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140828_1.pdf. Compiled by 500metrics, "7-year note auction of 28 August 2014 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2014-08-28.

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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