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7-year note auction of 26 February 2016 (new issue)

The 7-year note sold $37.384 billion at a high yield of 1.568% on , with a bid-to-cover ratio of 2.25.

Coupon
1.500%
Announced
Issued
Matures

High yield

1.568%

Median yield 1.510%

Bid-to-cover

2.25

▼ −0.38 since 28 Jan

Sold

$37.38 billion

$28 billion offered

Indirect bidders

53.5%

Of competitive bids accepted

The high yield was the lowest for a 7-year note since 25 September 2013

High yield at each 7-year note auction, %

The high yield was the lowest for a 7-year note since 25 September 201336 auctions from 30 May 2013 to 26 February 2016; the latest at 1.568%.1.3%1.5%1.8%2.0%2.3%2.5%2013201420152016This auction, 1.568%The high yield was the lowest for a 7-year note since 25 September 201336 auctions from 30 May 2013 to 26 February 2016; the latest at 1.568%.1.4%1.6%1.8%2.0%2.2%2.4%2014201520161.568%

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
1.5682.25
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.252.4812 of 120 of 12
High yield1.5681.88612 of 120 of 12
Indirect bidders' share53.554.07 of 125 of 12
Direct bidders' share14.212.61 of 1211 of 12
Primary dealers' share32.333.67 of 125 of 12
High minus median, basis points5.84.00 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 26 February 2009 (85 auctions in between).
  • High minus median, basis points: Highest for a 7-year note since 29 March 2012 (48 auctions in between).

Who bought the 7-year note?

Indirect bidders took 53.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 28 January 2016

Indirect bidders took 53.5% of the competitive bids acceptedIndirect bidders 53.5%, Direct bidders 14.2%, Primary dealers 32.3%Indirect bidders53.5%69.4%Direct bidders14.2%14.8%Primary dealers32.3%15.8%Indirect bidders took 53.5% of the competitive bids acceptedIndirect bidders 53.5%, Direct bidders 14.2%, Primary dealers 32.3%Indirect bidders53.5%69.4%Direct bidders14.2%14.8%Primary dealers32.3%15.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders53.569.4
Direct bidders14.214.8
Primary dealers32.315.8

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$28,000,000,000
Bids received$72,270,474,500
Sold$37,384,154,500
Competitive bids accepted$27,979,590,000
Non-competitive bids accepted$20,432,100
Federal Reserve (SOMA) add-on$9,384,132,400
Foreign and international (FIMA) non-competitive$0
High yield, %1.568
Median rate, %1.510
Low rate, %1.420
Interest rate (coupon), %1.500
Bids at the high rate filled, %33.44
Bid-to-cover ratio2.25
Indirect bidders accepted$14,963,990,000
Direct bidders accepted$3,973,000,000
Primary dealers accepted$9,042,600,000
Indirect bidders' share, % (ours)53.5
Direct bidders' share, % (ours)14.2
Primary dealers' share, % (ours)32.3
High minus median, basis points (ours)5.8
Treasury par yield curve, 7-year point, same day, %1.55
High yield minus that point, basis points (ours)1.8

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 ratio2.25Last 24 auctions24 of 240 of 242.50
Bid-to-cover ratio2.25All 86 since 26 February 200985 of 861 of 862.63
High yield1.568Last 24 auctions24 of 240 of 242.016
High yield1.568Since 26 February 200966 of 8620 of 862.024
High yield1.568All 135 since 6 February 1980115 of 13520 of 1352.712
Indirect bidders' share53.5Last 24 auctions9 of 2415 of 2450.3
Indirect bidders' share53.5All 86 since 26 February 200918 of 8668 of 8645.6
Direct bidders' share14.2Last 24 auctions10 of 2414 of 2414.0
Direct bidders' share14.2All 86 since 26 February 200933 of 8653 of 8612.8
Primary dealers' share32.3Last 24 auctions15 of 249 of 2434.6
Primary dealers' share32.3All 86 since 26 February 200971 of 8615 of 8639.3
High minus median, basis points5.8Last 24 auctions0 of 2424 of 244.0
High minus median, basis points5.8Since 26 February 200921 of 8663 of 864.2
High minus median, basis points5.8All 135 since 6 February 198025 of 135108 of 1353.8

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 26 February 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160226_1.pdf. Compiled by 500metrics, "7-year note auction of 26 February 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-02-26.

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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