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7-year note auction of 25 August 2016 (new issue)

The 7-year note sold $29.915 billion at a high yield of 1.423% on , with a bid-to-cover ratio of 2.38.

Coupon
1.375%
Announced
Issued
Matures

High yield

1.423%

Median yield 1.370%

Bid-to-cover

2.38

▼ −0.13 since 28 Jul

Sold

$29.91 billion

$28 billion offered

Indirect bidders

58.3%

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 26 September 2013 to 25 August 2016; the latest at 1.423%.1.0%1.5%2.0%2.5%2013201420152016This auction, 1.423%High yield at the last 36 7-year note auctions36 auctions from 26 September 2013 to 25 August 2016; the latest at 1.423%.1.3%1.5%1.8%2.0%2.3%201520161.423%

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
1.4232.38
1.3402.51
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.382.5210 of 122 of 12
High yield1.4231.70611 of 121 of 12
Indirect bidders' share58.362.57 of 125 of 12
Direct bidders' share10.414.19 of 123 of 12
Primary dealers' share31.326.83 of 129 of 12
High minus median, basis points5.34.11 of 1210 of 12

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

Who bought the 7-year note?

Indirect bidders took 58.3% of the competitive bids accepted

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

Indirect bidders took 58.3% of the competitive bids acceptedIndirect bidders 58.3%, Direct bidders 10.4%, Primary dealers 31.3%Indirect bidders58.3%65.5%Direct bidders10.4%7.7%Primary dealers31.3%26.8%Indirect bidders took 58.3% of the competitive bids acceptedIndirect bidders 58.3%, Direct bidders 10.4%, Primary dealers 31.3%Indirect bidders58.3%65.5%Direct bidders10.4%7.7%Primary dealers31.3%26.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders58.365.5
Direct bidders10.47.7
Primary dealers31.326.8

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$68,646,578,600
Sold$29,914,878,600
Competitive bids accepted$27,986,923,000
Non-competitive bids accepted$13,084,000
Federal Reserve (SOMA) add-on$1,914,871,600
Foreign and international (FIMA) non-competitive$0
High yield, %1.423
Median rate, %1.370
Low rate, %1.288
Interest rate (coupon), %1.375
Bids at the high rate filled, %1.65
Bid-to-cover ratio2.38
Indirect bidders accepted$16,325,623,000
Direct bidders accepted$2,907,000,000
Primary dealers accepted$8,754,300,000
Indirect bidders' share, % (ours)58.3
Direct bidders' share, % (ours)10.4
Primary dealers' share, % (ours)31.3
High minus median, basis points (ours)5.3
Treasury par yield curve, 7-year point, same day, %1.43
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 ratio2.38Last 24 auctions19 of 244 of 242.50
Bid-to-cover ratio2.38All 92 since 26 February 200982 of 928 of 922.63
High yield1.423Last 24 auctions23 of 241 of 241.860
High yield1.423Since 26 February 200975 of 9217 of 922.012
High yield1.423All 141 since 6 February 1980124 of 14117 of 1412.430
Indirect bidders' share58.3Last 24 auctions7 of 2417 of 2455.0
Indirect bidders' share58.3All 92 since 26 February 200915 of 9277 of 9246.9
Direct bidders' share10.4Last 24 auctions19 of 245 of 2413.2
Direct bidders' share10.4All 92 since 26 February 200961 of 9231 of 9212.9
Primary dealers' share31.3Last 24 auctions13 of 2411 of 2431.9
Primary dealers' share31.3All 92 since 26 February 200975 of 9217 of 9238.8
High minus median, basis points5.3Last 24 auctions3 of 2420 of 244.0
High minus median, basis points5.3Since 26 February 200929 of 9262 of 924.2
High minus median, basis points5.3All 141 since 6 February 198033 of 141107 of 1413.8

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 25 August 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160825_1.pdf. Compiled by 500metrics, "7-year note auction of 25 August 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-08-25.

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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