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7-year note auction of 25 September 2014 (new issue)

The 7-year note sold $29 billion at a high yield of 2.235% on , with a bid-to-cover ratio of 2.48.

Coupon
2.125%
Announced
Issued
Matures

High yield

2.235%

Median yield 2.197%

Bid-to-cover

2.48

▼ −0.09 since 28 Aug

Sold

$29.00 billion

$29 billion offered

Indirect bidders

48.3%

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 21 December 2011 to 25 September 2014; the latest at 2.235%.0.5%1.0%1.5%2.0%2.5%201220132014This auction, 2.235%High yield at the last 36 7-year note auctions36 auctions from 21 December 2011 to 25 September 2014; the latest at 2.235%.1.0%1.5%2.0%2.5%201320142.235%

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
2.2352.48
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.482.588 of 124 of 12
High yield2.2352.1294 of 128 of 12
Indirect bidders' share48.341.92 of 1210 of 12
Direct bidders' share10.019.512 of 120 of 12
Primary dealers' share41.734.92 of 1210 of 12
High minus median, basis points3.84.08 of 124 of 12

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

  • Direct bidders' share: Lowest for a 7-year note since 26 July 2012 (27 auctions in between).

Who bought the 7-year note?

Indirect bidders took 48.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 28 August 2014

Indirect bidders took 48.3% of the competitive bids acceptedIndirect bidders 48.3%, Direct bidders 10.0%, Primary dealers 41.7%Indirect bidders48.3%48.8%Direct bidders10.0%20.4%Primary dealers41.7%30.7%Indirect bidders took 48.3% of the competitive bids acceptedIndirect bidders 48.3%, Direct bidders 10.0%, Primary dealers 41.7%Indirect bidders48.3%48.8%Direct bidders10.0%20.4%Primary dealers41.7%30.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders48.348.8
Direct bidders10.020.4
Primary dealers41.730.7

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$71,859,187,500
Sold$29,000,003,500
Competitive bids accepted$28,981,216,000
Non-competitive bids accepted$18,787,500
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.235
Median rate, %2.197
Low rate, %2.117
Interest rate (coupon), %2.125
Bids at the high rate filled, %61.20
Bid-to-cover ratio2.48
Indirect bidders accepted$14,005,736,000
Direct bidders accepted$2,904,120,000
Primary dealers accepted$12,071,360,000
Indirect bidders' share, % (ours)48.3
Direct bidders' share, % (ours)10.0
Primary dealers' share, % (ours)41.7
High minus median, basis points (ours)3.8
Treasury par yield curve, 7-year point, same day, %2.21
High yield minus that point, basis points (ours)2.5

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 ratio2.48Last 24 auctions18 of 246 of 242.60
Bid-to-cover ratio2.48All 69 since 26 February 200960 of 699 of 692.67
High yield2.235Last 24 auctions4 of 2420 of 242.018
High yield2.235Since 26 February 200931 of 6938 of 692.106
High yield2.235All 118 since 6 February 198080 of 11838 of 1183.042
Indirect bidders' share48.3Last 24 auctions3 of 2421 of 2441.0
Indirect bidders' share48.3All 69 since 26 February 200921 of 6948 of 6942.0
Direct bidders' share10.0Last 24 auctions24 of 240 of 2419.6
Direct bidders' share10.0All 69 since 26 February 200943 of 6926 of 6912.9
Primary dealers' share41.7Last 24 auctions7 of 2417 of 2438.2
Primary dealers' share41.7All 69 since 26 February 200934 of 6935 of 6941.6
High minus median, basis points3.8Last 24 auctions11 of 2412 of 243.8
High minus median, basis points3.8Since 26 February 200947 of 6921 of 694.4
High minus median, basis points3.8All 118 since 6 February 198056 of 11861 of 1183.6

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 25 September 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140925_1.pdf. Compiled by 500metrics, "7-year note auction of 25 September 2014 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2014-09-25.

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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