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

The 7-year note sold $35.141 billion at a high yield of 1.652% on , with a bid-to-cover ratio of 2.57.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.652%

Median yield 1.615%

Bid-to-cover

2.57

▼ −0.08 since 28 Apr

Sold

$35.14 billion

$28 billion offered

Indirect bidders

64.6%

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 28 August 2013 to 26 May 2016; the latest at 1.652%.1.3%1.5%1.8%2.0%2.3%2.5%2013201420152016This auction, 1.652%High yield at the last 36 7-year note auctions36 auctions from 28 August 2013 to 26 May 2016; the latest at 1.652%.1.4%1.6%1.8%2.0%2.2%2.4%2014201520161.652%

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
1.6522.57
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.572.512 of 1210 of 12
High yield1.6521.8869 of 123 of 12
Indirect bidders' share64.656.32 of 1210 of 12
Direct bidders' share16.914.00 of 1212 of 12
Primary dealers' share18.531.011 of 121 of 12
High minus median, basis points3.74.08 of 123 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 (20 auctions in between).

Who bought the 7-year note?

Indirect bidders took 64.6% of the competitive bids accepted

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

Indirect bidders took 64.6% of the competitive bids acceptedIndirect bidders 64.6%, Direct bidders 16.9%, Primary dealers 18.5%Indirect bidders64.6%65.5%Direct bidders16.9%14.2%Primary dealers18.5%20.2%Indirect bidders took 64.6% of the competitive bids acceptedIndirect bidders 64.6%, Direct bidders 16.9%, Primary dealers 18.5%Indirect bidders64.6%65.5%Direct bidders16.9%14.2%Primary dealers18.5%20.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders64.665.5
Direct bidders16.914.2
Primary dealers18.520.2

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$79,184,301,200
Sold$35,140,794,700
Competitive bids accepted$27,975,020,500
Non-competitive bids accepted$24,990,000
Federal Reserve (SOMA) add-on$7,140,784,200
Foreign and international (FIMA) non-competitive$0
High yield, %1.652
Median rate, %1.615
Low rate, %1.500
Interest rate (coupon), %1.625
Bids at the high rate filled, %20.25
Bid-to-cover ratio2.57
Indirect bidders accepted$18,074,933,000
Direct bidders accepted$4,717,000,000
Primary dealers accepted$5,183,087,500
Indirect bidders' share, % (ours)64.6
Direct bidders' share, % (ours)16.9
Primary dealers' share, % (ours)18.5
High minus median, basis points (ours)3.7
Treasury par yield curve, 7-year point, same day, %1.65
High yield minus that point, basis points (ours)0.2

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 ratio2.57Last 24 auctions5 of 2418 of 242.50
Bid-to-cover ratio2.57All 89 since 26 February 200958 of 8930 of 892.63
High yield1.652Last 24 auctions20 of 244 of 241.945
High yield1.652Since 26 February 200962 of 8927 of 892.018
High yield1.652All 138 since 6 February 1980111 of 13827 of 1382.602
Indirect bidders' share64.6Last 24 auctions2 of 2422 of 2452.9
Indirect bidders' share64.6All 89 since 26 February 20093 of 8986 of 8946.4
Direct bidders' share16.9Last 24 auctions2 of 2422 of 2414.0
Direct bidders' share16.9All 89 since 26 February 200924 of 8965 of 8912.9
Primary dealers' share18.5Last 24 auctions23 of 241 of 2434.6
Primary dealers' share18.5All 89 since 26 February 200988 of 891 of 8938.9
High minus median, basis points3.7Last 24 auctions19 of 244 of 244.0
High minus median, basis points3.7Since 26 February 200963 of 8923 of 894.2
High minus median, basis points3.7All 138 since 6 February 198072 of 13863 of 1383.8

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 May 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160526_1.pdf. Compiled by 500metrics, "7-year note auction of 26 May 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-05-26.

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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