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7-year note auction of 26 November 2014 (new issue)

The 7-year note sold $29 billion at a high yield of 1.960% on , with a bid-to-cover ratio of 2.63.

Coupon
1.875%
Announced
Issued
Matures

High yield

1.960%

Median yield 1.922%

Bid-to-cover

2.63

▲ +0.21 since 30 Oct

Sold

$29.00 billion

$29 billion offered

Indirect bidders

50.0%

Of competitive bids accepted

The high yield was the lowest for a 7-year note since 30 October 2013

High yield at each 7-year note auction, %

The high yield was the lowest for a 7-year note since 30 October 201336 auctions from 23 February 2012 to 26 November 2014; the latest at 1.960%.0.5%1.0%1.5%2.0%2.5%201220132014This auction, 1.960%The high yield was the lowest for a 7-year note since 30 October 201336 auctions from 23 February 2012 to 26 November 2014; the latest at 1.960%.1.0%1.5%2.0%2.5%201320141.960%

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
1.9602.63
2.0182.42
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.632.582 of 1210 of 12
High yield1.9602.17112 of 120 of 12
Indirect bidders' share50.044.20 of 1212 of 12
Direct bidders' share12.818.111 of 121 of 12
Primary dealers' share37.136.56 of 126 of 12
High minus median, basis points3.84.07 of 123 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 (40 auctions in between).

Who bought the 7-year note?

Indirect bidders took 50.0% of the competitive bids accepted

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

Indirect bidders took 50.0% of the competitive bids acceptedIndirect bidders 50.0%, Direct bidders 12.8%, Primary dealers 37.1%Indirect bidders50.0%46.6%Direct bidders12.8%15.4%Primary dealers37.1%38.0%Indirect bidders took 50.0% of the competitive bids acceptedIndirect bidders 50.0%, Direct bidders 12.8%, Primary dealers 37.1%Indirect bidders50.0%46.6%Direct bidders12.8%15.4%Primary dealers37.1%38.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.046.6
Direct bidders12.815.4
Primary dealers37.138.0

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$76,409,096,300
Sold$29,000,046,300
Competitive bids accepted$28,978,250,000
Non-competitive bids accepted$21,796,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.960
Median rate, %1.922
Low rate, %1.850
Interest rate (coupon), %1.875
Bids at the high rate filled, %23.39
Bid-to-cover ratio2.63
Indirect bidders accepted$14,496,707,000
Direct bidders accepted$3,721,847,500
Primary dealers accepted$10,759,695,500
Indirect bidders' share, % (ours)50.0
Direct bidders' share, % (ours)12.8
Primary dealers' share, % (ours)37.1
High minus median, basis points (ours)3.8
Treasury par yield curve, 7-year point, same day, %1.96
High yield minus that point, basis points (ours)0.0

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 ratio2.63Last 24 auctions7 of 2417 of 242.58
Bid-to-cover ratio2.63All 71 since 26 February 200941 of 7126 of 712.66
High yield1.960Last 24 auctions15 of 249 of 242.036
High yield1.960Since 26 February 200944 of 7127 of 712.106
High yield1.960All 120 since 6 February 198093 of 12027 of 1202.950
Indirect bidders' share50.0Last 24 auctions0 of 2424 of 2441.6
Indirect bidders' share50.0All 71 since 26 February 200916 of 7155 of 7142.0
Direct bidders' share12.8Last 24 auctions21 of 243 of 2418.7
Direct bidders' share12.8All 71 since 26 February 200936 of 7135 of 7112.9
Primary dealers' share37.1Last 24 auctions15 of 249 of 2438.2
Primary dealers' share37.1All 71 since 26 February 200951 of 7120 of 7141.6
High minus median, basis points3.8Last 24 auctions11 of 2410 of 243.8
High minus median, basis points3.8Since 26 February 200947 of 7121 of 714.4
High minus median, basis points3.8All 120 since 6 February 198056 of 12061 of 1203.7

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 26 November 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20141126_1.pdf. Compiled by 500metrics, "7-year note auction of 26 November 2014 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2014-11-26.

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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