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

The 7-year note sold $35.441 billion at a high yield of 1.634% on , with a bid-to-cover ratio of 2.65.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.634%

Median yield 1.600%

Bid-to-cover

2.65

▲ +0.14 since 30 Mar

Sold

$35.44 billion

$28 billion offered

Indirect bidders

65.5%

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 July 2013 to 28 April 2016; the latest at 1.634%.1.3%1.5%1.8%2.0%2.3%2.5%2013201420152016This auction, 1.634%High yield at the last 36 7-year note auctions36 auctions from 25 July 2013 to 28 April 2016; the latest at 1.634%.1.4%1.6%1.8%2.0%2.2%2.4%2014201520161.634%

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
1.6342.65
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.652.500 of 1212 of 12
High yield1.6341.88610 of 122 of 12
Indirect bidders' share65.555.01 of 1211 of 12
Direct bidders' share14.213.82 of 1210 of 12
Primary dealers' share20.231.911 of 121 of 12
High minus median, basis points3.44.010 of 122 of 12

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

  • Bid-to-cover ratio: Highest for a 7-year note since 27 February 2014 (25 auctions in between).

Who bought the 7-year note?

Indirect bidders took 65.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 30 March 2016

Indirect bidders took 65.5% of the competitive bids acceptedIndirect bidders 65.5%, Direct bidders 14.2%, Primary dealers 20.2%Indirect bidders65.5%57.8%Direct bidders14.2%15.5%Primary dealers20.2%26.7%Indirect bidders took 65.5% of the competitive bids acceptedIndirect bidders 65.5%, Direct bidders 14.2%, Primary dealers 20.2%Indirect bidders65.5%57.8%Direct bidders14.2%15.5%Primary dealers20.2%26.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders65.557.8
Direct bidders14.215.5
Primary dealers20.226.7

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$81,710,514,100
Sold$35,440,718,100
Competitive bids accepted$27,973,669,000
Non-competitive bids accepted$26,339,300
Federal Reserve (SOMA) add-on$7,440,709,800
Foreign and international (FIMA) non-competitive$0
High yield, %1.634
Median rate, %1.600
Low rate, %1.490
Interest rate (coupon), %1.625
Bids at the high rate filled, %59.85
Bid-to-cover ratio2.65
Indirect bidders accepted$18,335,634,000
Direct bidders accepted$3,979,000,000
Primary dealers accepted$5,659,035,000
Indirect bidders' share, % (ours)65.5
Direct bidders' share, % (ours)14.2
Primary dealers' share, % (ours)20.2
High minus median, basis points (ours)3.4
Treasury par yield curve, 7-year point, same day, %1.60
High yield minus that point, basis points (ours)3.4

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 ratio2.65Last 24 auctions0 of 2424 of 242.50
Bid-to-cover ratio2.65All 88 since 26 February 200936 of 8849 of 882.63
High yield1.634Last 24 auctions21 of 243 of 241.985
High yield1.634Since 26 February 200962 of 8826 of 882.020
High yield1.634All 137 since 6 February 1980111 of 13726 of 1372.630
Indirect bidders' share65.5Last 24 auctions1 of 2423 of 2451.6
Indirect bidders' share65.5All 88 since 26 February 20092 of 8886 of 8846.4
Direct bidders' share14.2Last 24 auctions9 of 2415 of 2414.0
Direct bidders' share14.2All 88 since 26 February 200934 of 8854 of 8812.9
Primary dealers' share20.2Last 24 auctions23 of 241 of 2434.6
Primary dealers' share20.2All 88 since 26 February 200987 of 881 of 8839.0
High minus median, basis points3.4Last 24 auctions22 of 242 of 244.0
High minus median, basis points3.4Since 26 February 200970 of 8817 of 884.2
High minus median, basis points3.4All 137 since 6 February 198079 of 13757 of 1373.8

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 April 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160428_2.pdf. Compiled by 500metrics, "7-year note auction of 28 April 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-04-28.

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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