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7-year note auction of 27 August 2015 (new issue)

The 7-year note sold $29 billion at a high yield of 1.930% on , with a bid-to-cover ratio of 2.53.

Coupon
1.875%
Announced
Issued
Matures

High yield

1.930%

Median yield 1.890%

Bid-to-cover

2.53

▲ +0.06 since 30 Jul

Sold

$29.00 billion

$29 billion offered

Indirect bidders

50.8%

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 29 November 2012 to 27 August 2015; the latest at 1.930%.1.0%1.5%2.0%2.5%201320142015This auction, 1.930%High yield at the last 36 7-year note auctions36 auctions from 29 November 2012 to 27 August 2015; the latest at 1.930%.1.4%1.6%1.8%2.0%2.2%2.4%201420151.930%

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
1.9302.53
2.0212.47
2.1532.38
1.8882.49
1.8202.44
1.7922.32
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.532.462 of 1210 of 12
High yield1.9301.9897 of 125 of 12
Indirect bidders' share50.851.46 of 126 of 12
Direct bidders' share14.212.23 of 129 of 12
Primary dealers' share35.037.17 of 125 of 12
High minus median, basis points4.03.84 of 127 of 12

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

Who bought the 7-year note?

Indirect bidders took 50.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 30 July 2015

Indirect bidders took 50.8% of the competitive bids acceptedIndirect bidders 50.8%, Direct bidders 14.2%, Primary dealers 35.0%Indirect bidders50.8%49.1%Direct bidders14.2%12.0%Primary dealers35.0%38.8%Indirect bidders took 50.8% of the competitive bids acceptedIndirect bidders 50.8%, Direct bidders 14.2%, Primary dealers 35.0%Indirect bidders50.8%49.1%Direct bidders14.2%12.0%Primary dealers35.0%38.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders50.849.1
Direct bidders14.212.0
Primary dealers35.038.8

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$73,265,445,400
Sold$29,000,002,200
Competitive bids accepted$28,985,391,800
Non-competitive bids accepted$14,610,400
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.930
Median rate, %1.890
Low rate, %1.808
Interest rate (coupon), %1.875
Bids at the high rate filled, %72.84
Bid-to-cover ratio2.53
Indirect bidders accepted$14,736,836,800
Direct bidders accepted$4,102,455,000
Primary dealers accepted$10,146,100,000
Indirect bidders' share, % (ours)50.8
Direct bidders' share, % (ours)14.2
Primary dealers' share, % (ours)35.0
High minus median, basis points (ours)4.0
Treasury par yield curve, 7-year point, same day, %1.91
High yield minus that point, basis points (ours)2.0

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 ratio2.53Last 24 auctions10 of 2414 of 242.48
Bid-to-cover ratio2.53All 80 since 26 February 200960 of 8020 of 802.64
High yield1.930Last 24 auctions17 of 247 of 242.052
High yield1.930Since 26 February 200949 of 8031 of 802.052
High yield1.930All 129 since 6 February 198098 of 12931 of 1292.815
Indirect bidders' share50.8Last 24 auctions6 of 2418 of 2448.0
Indirect bidders' share50.8All 80 since 26 February 200920 of 8060 of 8042.8
Direct bidders' share14.2Last 24 auctions14 of 2410 of 2415.3
Direct bidders' share14.2All 80 since 26 February 200932 of 8048 of 8012.5
Primary dealers' share35.0Last 24 auctions14 of 2410 of 2437.1
Primary dealers' share35.0All 80 since 26 February 200963 of 8017 of 8040.7
High minus median, basis points4.0Last 24 auctions9 of 2413 of 243.8
High minus median, basis points4.0Since 26 February 200942 of 8031 of 804.3
High minus median, basis points4.0All 129 since 6 February 198047 of 12971 of 1293.8

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 27 August 2015. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2015/R_20150827_1.pdf. Compiled by 500metrics, "7-year note auction of 27 August 2015 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2015-08-27.

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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