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7-year note auction of 28 January 2016 (new issue)

The 7-year note sold $29.528 billion at a high yield of 1.759% on , with a bid-to-cover ratio of 2.63.

Coupon
1.750%
Announced
Issued
Matures

High yield

1.759%

Median yield 1.720%

Bid-to-cover

2.63

▲ +0.29 since 30 Dec

Sold

$29.53 billion

$29 billion offered

Indirect bidders

69.4%

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 25 April 2013 to 28 January 2016; the latest at 1.759%.1.0%1.5%2.0%2.5%2013201420152016This auction, 1.759%High yield at the last 36 7-year note auctions36 auctions from 25 April 2013 to 28 January 2016; the latest at 1.759%.1.4%1.6%1.8%2.0%2.2%2.4%2014201520161.759%

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
1.7592.63
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.632.480 of 1212 of 12
High yield1.7591.88611 of 121 of 12
Indirect bidders' share69.454.00 of 1212 of 12
Direct bidders' share14.812.61 of 1211 of 12
Primary dealers' share15.833.612 of 120 of 12
High minus median, basis points3.94.08 of 124 of 12

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

  • Bid-to-cover ratio: Highest for a 7-year note since 26 November 2014 (13 auctions in between).
  • Indirect bidders' share: Highest of all 85 earlier 7-year note auctions we hold.
  • Primary dealers' share: Lowest of all 85 earlier 7-year note auctions we hold.

Who bought the 7-year note?

Indirect bidders took 69.4% of the competitive bids accepted

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

Indirect bidders took 69.4% of the competitive bids acceptedIndirect bidders 69.4%, Direct bidders 14.8%, Primary dealers 15.8%Indirect bidders69.4%47.1%Direct bidders14.8%14.1%Primary dealers15.8%38.8%Indirect bidders took 69.4% of the competitive bids acceptedIndirect bidders 69.4%, Direct bidders 14.8%, Primary dealers 15.8%Indirect bidders69.4%47.1%Direct bidders14.8%14.1%Primary dealers15.8%38.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders69.447.1
Direct bidders14.814.1
Primary dealers15.838.8

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$76,811,737,900
Sold$29,527,996,900
Competitive bids accepted$28,973,484,000
Non-competitive bids accepted$26,592,700
Federal Reserve (SOMA) add-on$527,920,200
Foreign and international (FIMA) non-competitive$0
High yield, %1.759
Median rate, %1.720
Low rate, %1.588
Interest rate (coupon), %1.750
Bids at the high rate filled, %60.94
Bid-to-cover ratio2.63
Indirect bidders accepted$20,101,947,000
Direct bidders accepted$4,295,410,000
Primary dealers accepted$4,576,127,000
Indirect bidders' share, % (ours)69.4
Direct bidders' share, % (ours)14.8
Primary dealers' share, % (ours)15.8
High minus median, basis points (ours)3.9
Treasury par yield curve, 7-year point, same day, %1.75
High yield minus that point, basis points (ours)0.9

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 auctions2 of 2421 of 242.50
Bid-to-cover ratio2.63All 85 since 26 February 200941 of 8539 of 852.63
High yield1.759Last 24 auctions23 of 241 of 242.020
High yield1.759Since 26 February 200961 of 8524 of 852.026
High yield1.759All 134 since 6 February 1980110 of 13424 of 1342.728
Indirect bidders' share69.4Last 24 auctions0 of 2424 of 2450.0
Indirect bidders' share69.4All 85 since 26 February 20090 of 8585 of 8544.9
Direct bidders' share14.8Last 24 auctions10 of 2414 of 2414.0
Direct bidders' share14.8All 85 since 26 February 200932 of 8553 of 8512.8
Primary dealers' share15.8Last 24 auctions24 of 240 of 2434.6
Primary dealers' share15.8All 85 since 26 February 200985 of 850 of 8539.4
High minus median, basis points3.9Last 24 auctions12 of 2411 of 244.0
High minus median, basis points3.9Since 26 February 200953 of 8530 of 854.2
High minus median, basis points3.9All 134 since 6 February 198062 of 13470 of 1343.8

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 28 January 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160128_1.pdf. Compiled by 500metrics, "7-year note auction of 28 January 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-01-28.

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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