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7-year note auction of 24 September 2015 (new issue)

The 7-year note sold $29 billion at a high yield of 1.813% on , with a bid-to-cover ratio of 2.51.

Coupon
1.750%
Announced
Issued
Matures

High yield

1.813%

Median yield 1.776%

Bid-to-cover

2.51

▼ −0.02 since 27 Aug

Sold

$29.00 billion

$29 billion offered

Indirect bidders

62.6%

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 19 December 2012 to 24 September 2015; the latest at 1.813%.1.0%1.5%2.0%2.5%201320142015This auction, 1.813%High yield at the last 36 7-year note auctions36 auctions from 19 December 2012 to 24 September 2015; the latest at 1.813%.1.4%1.6%1.8%2.0%2.2%2.4%201420151.813%

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
1.8132.51
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.512.462 of 1210 of 12
High yield1.8131.94510 of 122 of 12
Indirect bidders' share62.651.60 of 1212 of 12
Direct bidders' share8.912.211 of 121 of 12
Primary dealers' share28.537.112 of 120 of 12
High minus median, basis points3.73.89 of 123 of 12

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

  • Indirect bidders' share: Highest for a 7-year note since 29 December 2010 (58 auctions in between).
  • Primary dealers' share: Lowest for a 7-year note since 27 March 2014 (17 auctions in between).

Who bought the 7-year note?

Indirect bidders took 62.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 August 2015

Indirect bidders took 62.6% of the competitive bids acceptedIndirect bidders 62.6%, Direct bidders 8.9%, Primary dealers 28.5%Indirect bidders62.6%50.8%Direct bidders8.9%14.2%Primary dealers28.5%35.0%Indirect bidders took 62.6% of the competitive bids acceptedIndirect bidders 62.6%, Direct bidders 8.9%, Primary dealers 28.5%Indirect bidders62.6%50.8%Direct bidders8.9%14.2%Primary dealers28.5%35.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders62.650.8
Direct bidders8.914.2
Primary dealers28.535.0

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$72,928,155,200
Sold$29,000,000,800
Competitive bids accepted$28,983,895,600
Non-competitive bids accepted$16,105,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.813
Median rate, %1.776
Low rate, %1.700
Interest rate (coupon), %1.750
Bids at the high rate filled, %5.06
Bid-to-cover ratio2.51
Indirect bidders accepted$18,139,895,600
Direct bidders accepted$2,577,000,000
Primary dealers accepted$8,267,000,000
Indirect bidders' share, % (ours)62.6
Direct bidders' share, % (ours)8.9
Primary dealers' share, % (ours)28.5
High minus median, basis points (ours)3.7
Treasury par yield curve, 7-year point, same day, %1.84
High yield minus that point, basis points (ours)-2.7

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 ratio2.51Last 24 auctions10 of 2414 of 242.48
Bid-to-cover ratio2.51All 81 since 26 February 200962 of 8119 of 812.64
High yield1.813Last 24 auctions22 of 242 of 242.052
High yield1.813Since 26 February 200955 of 8126 of 812.045
High yield1.813All 130 since 6 February 1980104 of 13026 of 1302.782
Indirect bidders' share62.6Last 24 auctions0 of 2424 of 2448.6
Indirect bidders' share62.6All 81 since 26 February 20092 of 8179 of 8142.8
Direct bidders' share8.9Last 24 auctions23 of 241 of 2415.3
Direct bidders' share8.9All 81 since 26 February 200958 of 8123 of 8112.7
Primary dealers' share28.5Last 24 auctions23 of 241 of 2436.3
Primary dealers' share28.5All 81 since 26 February 200978 of 813 of 8140.4
High minus median, basis points3.7Last 24 auctions17 of 247 of 244.0
High minus median, basis points3.7Since 26 February 200957 of 8122 of 814.2
High minus median, basis points3.7All 130 since 6 February 198066 of 13062 of 1303.8

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 24 September 2015. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2015/R_20150924_1.pdf. Compiled by 500metrics, "7-year note auction of 24 September 2015 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2015-09-24.

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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