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

The 7-year note sold $29.707 billion at a high yield of 1.389% on , with a bid-to-cover ratio of 2.47.

Coupon
1.375%
Announced
Issued
Matures

High yield

1.389%

Median yield 1.347%

Bid-to-cover

2.47

▲ +0.09 since 25 Aug

Sold

$29.71 billion

$28 billion offered

Indirect bidders

59.4%

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 30 October 2013 to 28 September 2016; the latest at 1.389%.1.0%1.5%2.0%2.5%2013201420152016This auction, 1.389%High yield at the last 36 7-year note auctions36 auctions from 30 October 2013 to 28 September 2016; the latest at 1.389%.1.3%1.5%1.8%2.0%2.3%201520161.389%

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
1.3892.47
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.472.519 of 123 of 12
High yield1.3891.64311 of 121 of 12
Indirect bidders' share59.462.57 of 125 of 12
Direct bidders' share10.514.08 of 124 of 12
Primary dealers' share30.226.84 of 128 of 12
High minus median, basis points4.24.26 of 125 of 12

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

Who bought the 7-year note?

Indirect bidders took 59.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 August 2016

Indirect bidders took 59.4% of the competitive bids acceptedIndirect bidders 59.4%, Direct bidders 10.5%, Primary dealers 30.2%Indirect bidders59.4%58.3%Direct bidders10.5%10.4%Primary dealers30.2%31.3%Indirect bidders took 59.4% of the competitive bids acceptedIndirect bidders 59.4%, Direct bidders 10.5%, Primary dealers 30.2%Indirect bidders59.4%58.3%Direct bidders10.5%10.4%Primary dealers30.2%31.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders59.458.3
Direct bidders10.510.4
Primary dealers30.231.3

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$70,966,662,300
Sold$29,706,834,800
Competitive bids accepted$27,986,791,500
Non-competitive bids accepted$13,209,000
Federal Reserve (SOMA) add-on$1,706,834,300
Foreign and international (FIMA) non-competitive$0
High yield, %1.389
Median rate, %1.347
Low rate, %1.250
Interest rate (coupon), %1.375
Bids at the high rate filled, %96.45
Bid-to-cover ratio2.47
Indirect bidders accepted$16,615,199,000
Direct bidders accepted$2,927,000,000
Primary dealers accepted$8,444,592,500
Indirect bidders' share, % (ours)59.4
Direct bidders' share, % (ours)10.5
Primary dealers' share, % (ours)30.2
High minus median, basis points (ours)4.2
Treasury par yield curve, 7-year point, same day, %1.41
High yield minus that point, basis points (ours)-2.1

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 ratio2.47Last 24 auctions14 of 249 of 242.50
Bid-to-cover ratio2.47All 93 since 26 February 200974 of 9318 of 932.63
High yield1.389Last 24 auctions23 of 241 of 241.827
High yield1.389Since 26 February 200979 of 9314 of 932.010
High yield1.389All 142 since 6 February 1980128 of 14214 of 1422.430
Indirect bidders' share59.4Last 24 auctions7 of 2417 of 2456.0
Indirect bidders' share59.4All 93 since 26 February 200914 of 9379 of 9347.1
Direct bidders' share10.5Last 24 auctions18 of 246 of 2412.8
Direct bidders' share10.5All 93 since 26 February 200961 of 9332 of 9312.8
Primary dealers' share30.2Last 24 auctions15 of 249 of 2431.9
Primary dealers' share30.2All 93 since 26 February 200981 of 9312 of 9338.8
High minus median, basis points4.2Last 24 auctions9 of 2414 of 244.0
High minus median, basis points4.2Since 26 February 200946 of 9345 of 934.2
High minus median, basis points4.2All 142 since 6 February 198051 of 14289 of 1423.8

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 September 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160928_2.pdf. Compiled by 500metrics, "7-year note auction of 28 September 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-09-28.

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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