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7-year note auction of 26 February 2015 (new issue)

The 7-year note sold $29 billion at a high yield of 1.834% on , with a bid-to-cover ratio of 2.37.

Coupon
1.750%
Announced
Issued
Matures

High yield

1.834%

Median yield 1.780%

Bid-to-cover

2.37

▼ −0.13 since 29 Jan

Sold

$29.00 billion

$29 billion offered

Indirect bidders

52.3%

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 24 May 2012 to 26 February 2015; the latest at 1.834%.0.5%1.0%1.5%2.0%2.5%2012201320142015This auction, 1.834%High yield at the last 36 7-year note auctions36 auctions from 24 May 2012 to 26 February 2015; the latest at 1.834%.1.3%1.5%1.8%2.0%2.3%2.5%2013201420151.834%

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
1.8342.37
1.5902.50
2.1252.39
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.372.5812 of 120 of 12
High yield1.8342.11511 of 121 of 12
Indirect bidders' share52.347.92 of 1210 of 12
Direct bidders' share10.516.010 of 122 of 12
Primary dealers' share37.136.35 of 127 of 12
High minus median, basis points5.43.80 of 1212 of 12

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

  • Bid-to-cover ratio: Lowest for a 7-year note since 27 November 2013 (14 auctions in between).
  • High minus median, basis points: Highest for a 7-year note since 28 June 2012 (33 auctions in between).

Who bought the 7-year note?

Indirect bidders took 52.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 29 January 2015

Indirect bidders took 52.3% of the competitive bids acceptedIndirect bidders 52.3%, Direct bidders 10.5%, Primary dealers 37.1%Indirect bidders52.3%56.1%Direct bidders10.5%14.9%Primary dealers37.1%29.0%Indirect bidders took 52.3% of the competitive bids acceptedIndirect bidders 52.3%, Direct bidders 10.5%, Primary dealers 37.1%Indirect bidders52.3%56.1%Direct bidders10.5%14.9%Primary dealers37.1%29.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders52.356.1
Direct bidders10.514.9
Primary dealers37.129.0

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$68,687,695,200
Sold$29,000,022,400
Competitive bids accepted$28,990,292,200
Non-competitive bids accepted$9,730,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.834
Median rate, %1.780
Low rate, %1.710
Interest rate (coupon), %1.750
Bids at the high rate filled, %54.12
Bid-to-cover ratio2.37
Indirect bidders accepted$15,166,971,000
Direct bidders accepted$3,054,530,000
Primary dealers accepted$10,768,791,200
Indirect bidders' share, % (ours)52.3
Direct bidders' share, % (ours)10.5
Primary dealers' share, % (ours)37.1
High minus median, basis points (ours)5.4
Treasury par yield curve, 7-year point, same day, %1.86
High yield minus that point, basis points (ours)-2.6

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 ratio2.37Last 24 auctions23 of 241 of 242.58
Bid-to-cover ratio2.37All 74 since 26 February 200970 of 744 of 742.65
High yield1.834Last 24 auctions19 of 245 of 242.052
High yield1.834Since 26 February 200949 of 7425 of 742.106
High yield1.834All 123 since 6 February 198098 of 12325 of 1232.854
Indirect bidders' share52.3Last 24 auctions2 of 2422 of 2443.6
Indirect bidders' share52.3All 74 since 26 February 200911 of 7463 of 7442.2
Direct bidders' share10.5Last 24 auctions22 of 242 of 2416.9
Direct bidders' share10.5All 74 since 26 February 200946 of 7428 of 7412.9
Primary dealers' share37.1Last 24 auctions13 of 2411 of 2437.5
Primary dealers' share37.1All 74 since 26 February 200951 of 7423 of 7441.2
High minus median, basis points5.4Last 24 auctions0 of 2424 of 243.8
High minus median, basis points5.4Since 26 February 200926 of 7448 of 744.3
High minus median, basis points5.4All 123 since 6 February 198030 of 12393 of 1233.7

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 February 2015. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2015/R_20150226_1.pdf. Compiled by 500metrics, "7-year note auction of 26 February 2015 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2015-02-26.

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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