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7-year note auction of 27 October 2016 (new issue)

The 7-year note sold $29.693 billion at a high yield of 1.653% on , with a bid-to-cover ratio of 2.49.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.653%

Median yield 1.600%

Bid-to-cover

2.49

▲ +0.02 since 28 Sep

Sold

$29.69 billion

$28 billion offered

Indirect bidders

61.5%

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 27 November 2013 to 27 October 2016; the latest at 1.653%.1.0%1.5%2.0%2.5%201420152016This auction, 1.653%High yield at the last 36 7-year note auctions36 auctions from 27 November 2013 to 27 October 2016; the latest at 1.653%.1.3%1.5%1.8%2.0%2.3%201520161.653%

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
1.6532.49
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.492.518 of 124 of 12
High yield1.6531.6204 of 128 of 12
Indirect bidders' share61.560.96 of 126 of 12
Direct bidders' share13.214.08 of 124 of 12
Primary dealers' share25.326.87 of 125 of 12
High minus median, basis points5.34.21 of 129 of 12

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

Who bought the 7-year note?

Indirect bidders took 61.5% of the competitive bids accepted

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

Indirect bidders took 61.5% of the competitive bids acceptedIndirect bidders 61.5%, Direct bidders 13.2%, Primary dealers 25.3%Indirect bidders61.5%59.4%Direct bidders13.2%10.5%Primary dealers25.3%30.2%Indirect bidders took 61.5% of the competitive bids acceptedIndirect bidders 61.5%, Direct bidders 13.2%, Primary dealers 25.3%Indirect bidders61.5%59.4%Direct bidders13.2%10.5%Primary dealers25.3%30.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders61.559.4
Direct bidders13.210.5
Primary dealers25.330.2

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$71,442,188,100
Sold$29,692,705,500
Competitive bids accepted$27,984,258,400
Non-competitive bids accepted$15,742,800
Federal Reserve (SOMA) add-on$1,692,704,300
Foreign and international (FIMA) non-competitive$0
High yield, %1.653
Median rate, %1.600
Low rate, %1.535
Interest rate (coupon), %1.625
Bids at the high rate filled, %23.26
Bid-to-cover ratio2.49
Indirect bidders accepted$17,212,936,600
Direct bidders accepted$3,684,000,000
Primary dealers accepted$7,087,321,800
Indirect bidders' share, % (ours)61.5
Direct bidders' share, % (ours)13.2
Primary dealers' share, % (ours)25.3
High minus median, basis points (ours)5.3
Treasury par yield curve, 7-year point, same day, %1.64
High yield minus that point, basis points (ours)1.3

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 ratio2.49Last 24 auctions12 of 2411 of 242.50
Bid-to-cover ratio2.49All 94 since 26 February 200972 of 9421 of 942.63
High yield1.653Last 24 auctions15 of 249 of 241.816
High yield1.653Since 26 February 200962 of 9432 of 942.000
High yield1.653All 143 since 6 February 1980111 of 14332 of 1432.429
Indirect bidders' share61.5Last 24 auctions7 of 2417 of 2456.3
Indirect bidders' share61.5All 94 since 26 February 200912 of 9482 of 9447.3
Direct bidders' share13.2Last 24 auctions11 of 2413 of 2412.8
Direct bidders' share13.2All 94 since 26 February 200944 of 9450 of 9412.8
Primary dealers' share25.3Last 24 auctions19 of 245 of 2431.4
Primary dealers' share25.3All 94 since 26 February 200989 of 945 of 9438.7
High minus median, basis points5.3Last 24 auctions3 of 2419 of 244.0
High minus median, basis points5.3Since 26 February 200929 of 9463 of 944.2
High minus median, basis points5.3All 143 since 6 February 198033 of 143108 of 1433.8

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 27 October 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20161027_1.pdf. Compiled by 500metrics, "7-year note auction of 27 October 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-10-27.

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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