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7-year note auction of 22 June 2016 (new issue)

The 7-year note sold $32.085 billion at a high yield of 1.497% on , with a bid-to-cover ratio of 2.56.

Coupon
1.375%
Announced
Issued
Matures

High yield

1.497%

Median yield 1.449%

Bid-to-cover

2.56

▼ −0.01 since 26 May

Sold

$32.08 billion

$28 billion offered

Indirect bidders

65.6%

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 29 August 2013 to 22 June 2016; the latest at 1.497%.1.3%1.5%1.8%2.0%2.3%2.5%2013201420152016This auction, 1.497%The high yield was the lowest for a 7-year note since 25 September 201336 auctions from 29 August 2013 to 22 June 2016; the latest at 1.497%.1.4%1.6%1.8%2.0%2.2%2.4%2014201520161.497%

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
1.4972.56
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.562.513 of 129 of 12
High yield1.4971.84912 of 120 of 12
Indirect bidders' share65.657.21 of 1211 of 12
Direct bidders' share9.114.111 of 121 of 12
Primary dealers' share25.329.58 of 124 of 12
High minus median, basis points4.84.02 of 1210 of 12

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

Who bought the 7-year note?

Indirect bidders took 65.6% of the competitive bids accepted

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

Indirect bidders took 65.6% of the competitive bids acceptedIndirect bidders 65.6%, Direct bidders 9.1%, Primary dealers 25.3%Indirect bidders65.6%64.6%Direct bidders9.1%16.9%Primary dealers25.3%18.5%Indirect bidders took 65.6% of the competitive bids acceptedIndirect bidders 65.6%, Direct bidders 9.1%, Primary dealers 25.3%Indirect bidders65.6%64.6%Direct bidders9.1%16.9%Primary dealers25.3%18.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders65.664.6
Direct bidders9.116.9
Primary dealers25.318.5

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$75,725,196,700
Sold$32,084,663,900
Competitive bids accepted$27,992,960,200
Non-competitive bids accepted$7,047,200
Federal Reserve (SOMA) add-on$4,084,656,500
Foreign and international (FIMA) non-competitive$0
High yield, %1.497
Median rate, %1.449
Low rate, %1.350
Interest rate (coupon), %1.375
Bids at the high rate filled, %87.12
Bid-to-cover ratio2.56
Indirect bidders accepted$18,359,720,200
Direct bidders accepted$2,557,000,000
Primary dealers accepted$7,076,240,000
Indirect bidders' share, % (ours)65.6
Direct bidders' share, % (ours)9.1
Primary dealers' share, % (ours)25.3
High minus median, basis points (ours)4.8
Treasury par yield curve, 7-year point, same day, %1.49
High yield minus that point, basis points (ours)0.7

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 ratio2.56Last 24 auctions6 of 2418 of 242.50
Bid-to-cover ratio2.56All 90 since 26 February 200960 of 9028 of 902.63
High yield1.497Last 24 auctions24 of 240 of 241.909
High yield1.497Since 26 February 200970 of 9020 of 902.016
High yield1.497All 139 since 6 February 1980119 of 13920 of 1392.575
Indirect bidders' share65.6Last 24 auctions1 of 2423 of 2453.7
Indirect bidders' share65.6All 90 since 26 February 20092 of 9088 of 9046.5
Direct bidders' share9.1Last 24 auctions22 of 242 of 2414.0
Direct bidders' share9.1All 90 since 26 February 200965 of 9025 of 9013.0
Primary dealers' share25.3Last 24 auctions20 of 244 of 2433.6
Primary dealers' share25.3All 90 since 26 February 200986 of 904 of 9038.9
High minus median, basis points4.8Last 24 auctions4 of 2420 of 244.0
High minus median, basis points4.8Since 26 February 200931 of 9058 of 904.2
High minus median, basis points4.8All 139 since 6 February 198036 of 139102 of 1393.8

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 22 June 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160622_3.pdf. Compiled by 500metrics, "7-year note auction of 22 June 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-06-22.

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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