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7-year note auction of 30 December 2015 (new issue)

The 7-year note sold $29 billion at a high yield of 2.161% on , with a bid-to-cover ratio of 2.34.

Coupon
2.125%
Announced
Issued
Matures

High yield

2.161%

Median yield 2.115%

Bid-to-cover

2.34

▼ −0.17 since 25 Nov

Sold

$29.00 billion

$29 billion offered

Indirect bidders

47.1%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 25 September 2014

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 25 September 201436 auctions from 28 March 2013 to 30 December 2015; the latest at 2.161%.1.0%1.5%2.0%2.5%201320142015This auction, 2.161%The high yield was the highest for a 7-year note since 25 September 201436 auctions from 28 March 2013 to 30 December 2015; the latest at 2.161%.1.4%1.6%1.8%2.0%2.2%2.4%201420152.161%

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
2.1612.34
2.0132.51
1.8852.55
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.342.4811 of 121 of 12
High yield2.1611.8860 of 1212 of 12
Indirect bidders' share47.155.012 of 120 of 12
Direct bidders' share14.112.22 of 1210 of 12
Primary dealers' share38.833.61 of 1211 of 12
High minus median, basis points4.64.02 of 129 of 12

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

  • Indirect bidders' share: Lowest for a 7-year note since 30 October 2014 (13 auctions in between).

Who bought the 7-year note?

Indirect bidders took 47.1% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 November 2015

Indirect bidders took 47.1% of the competitive bids acceptedIndirect bidders 47.1%, Direct bidders 14.1%, Primary dealers 38.8%Indirect bidders47.1%55.9%Direct bidders14.1%13.5%Primary dealers38.8%30.5%Indirect bidders took 47.1% of the competitive bids acceptedIndirect bidders 47.1%, Direct bidders 14.1%, Primary dealers 38.8%Indirect bidders47.1%55.9%Direct bidders14.1%13.5%Primary dealers38.8%30.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders47.155.9
Direct bidders14.113.5
Primary dealers38.830.5

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$68,002,863,300
Sold$29,000,008,300
Competitive bids accepted$28,982,792,000
Non-competitive bids accepted$17,216,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.161
Median rate, %2.115
Low rate, %1.888
Interest rate (coupon), %2.125
Bids at the high rate filled, %69.43
Bid-to-cover ratio2.34
Indirect bidders accepted$13,654,362,000
Direct bidders accepted$4,076,000,000
Primary dealers accepted$11,252,430,000
Indirect bidders' share, % (ours)47.1
Direct bidders' share, % (ours)14.1
Primary dealers' share, % (ours)38.8
High minus median, basis points (ours)4.6
Treasury par yield curve, 7-year point, same day, %2.14
High yield minus that point, basis points (ours)2.1

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 ratio2.34Last 24 auctions23 of 241 of 242.50
Bid-to-cover ratio2.34All 84 since 26 February 200980 of 844 of 842.63
High yield2.161Last 24 auctions6 of 2418 of 242.020
High yield2.161Since 26 February 200934 of 8450 of 842.024
High yield2.161All 133 since 6 February 198083 of 13350 of 1332.744
Indirect bidders' share47.1Last 24 auctions18 of 246 of 2450.0
Indirect bidders' share47.1All 84 since 26 February 200938 of 8446 of 8444.8
Direct bidders' share14.1Last 24 auctions12 of 2412 of 2414.1
Direct bidders' share14.1All 84 since 26 February 200933 of 8451 of 8412.8
Primary dealers' share38.8Last 24 auctions4 of 2420 of 2434.6
Primary dealers' share38.8All 84 since 26 February 200946 of 8438 of 8439.8
High minus median, basis points4.6Last 24 auctions3 of 2420 of 244.0
High minus median, basis points4.6Since 26 February 200932 of 8451 of 844.2
High minus median, basis points4.6All 133 since 6 February 198037 of 13395 of 1333.8

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 30 December 2015. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2015/R_20151230_1.pdf. Compiled by 500metrics, "7-year note auction of 30 December 2015 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2015-12-30.

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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