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7-year note auction of 30 March 2016 (new issue)

The 7-year note sold $34.671 billion at a high yield of 1.606% on , with a bid-to-cover ratio of 2.51.

Coupon
1.500%
Announced
Issued
Matures

High yield

1.606%

Median yield 1.553%

Bid-to-cover

2.51

▲ +0.26 since 26 Feb

Sold

$34.67 billion

$28 billion offered

Indirect bidders

57.8%

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 27 June 2013 to 30 March 2016; the latest at 1.606%.1.3%1.5%1.8%2.0%2.3%2.5%2013201420152016This auction, 1.606%High yield at the last 36 7-year note auctions36 auctions from 27 June 2013 to 30 March 2016; the latest at 1.606%.1.4%1.6%1.8%2.0%2.2%2.4%2014201520161.606%

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
1.6062.51
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.512.483 of 127 of 12
High yield1.6061.88611 of 121 of 12
Indirect bidders' share57.854.03 of 129 of 12
Direct bidders' share15.513.20 of 1212 of 12
Primary dealers' share26.732.710 of 122 of 12
High minus median, basis points5.34.02 of 1210 of 12

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

  • Direct bidders' share: Highest for a 7-year note since 28 August 2014 (18 auctions in between).

Who bought the 7-year note?

Indirect bidders took 57.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 26 February 2016

Indirect bidders took 57.8% of the competitive bids acceptedIndirect bidders 57.8%, Direct bidders 15.5%, Primary dealers 26.7%Indirect bidders57.8%53.5%Direct bidders15.5%14.2%Primary dealers26.7%32.3%Indirect bidders took 57.8% of the competitive bids acceptedIndirect bidders 57.8%, Direct bidders 15.5%, Primary dealers 26.7%Indirect bidders57.8%53.5%Direct bidders15.5%14.2%Primary dealers26.7%32.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders57.853.5
Direct bidders15.514.2
Primary dealers26.732.3

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$76,822,374,500
Sold$34,671,134,500
Competitive bids accepted$27,982,057,000
Non-competitive bids accepted$17,956,900
Federal Reserve (SOMA) add-on$6,671,120,600
Foreign and international (FIMA) non-competitive$0
High yield, %1.606
Median rate, %1.553
Low rate, %1.495
Interest rate (coupon), %1.500
Bids at the high rate filled, %57.38
Bid-to-cover ratio2.51
Indirect bidders accepted$16,177,797,000
Direct bidders accepted$4,336,000,000
Primary dealers accepted$7,468,260,000
Indirect bidders' share, % (ours)57.8
Direct bidders' share, % (ours)15.5
Primary dealers' share, % (ours)26.7
High minus median, basis points (ours)5.3
Treasury par yield curve, 7-year point, same day, %1.60
High yield minus that point, basis points (ours)0.6

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 auctions9 of 2413 of 242.50
Bid-to-cover ratio2.51All 87 since 26 February 200964 of 8721 of 872.63
High yield1.606Last 24 auctions22 of 242 of 242.012
High yield1.606Since 26 February 200963 of 8724 of 872.021
High yield1.606All 136 since 6 February 1980112 of 13624 of 1362.671
Indirect bidders' share57.8Last 24 auctions3 of 2421 of 2450.7
Indirect bidders' share57.8All 87 since 26 February 200911 of 8776 of 8746.3
Direct bidders' share15.5Last 24 auctions5 of 2419 of 2414.0
Direct bidders' share15.5All 87 since 26 February 200929 of 8758 of 8712.8
Primary dealers' share26.7Last 24 auctions21 of 243 of 2434.6
Primary dealers' share26.7All 87 since 26 February 200984 of 873 of 8739.2
High minus median, basis points5.3Last 24 auctions3 of 2421 of 244.0
High minus median, basis points5.3Since 26 February 200929 of 8758 of 874.2
High minus median, basis points5.3All 136 since 6 February 198033 of 136103 of 1363.8

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 March 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160330_1.pdf. Compiled by 500metrics, "7-year note auction of 30 March 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-03-30.

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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