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7-year note auction of 29 March 2017 (new issue)

The 7-year note sold $31.39 billion at a high yield of 2.215% on , with a bid-to-cover ratio of 2.56.

Coupon
2.125%
Announced
Issued
Matures

High yield

2.215%

Median yield 2.175%

Bid-to-cover

2.56

▲ +0.07 since 23 Feb

Sold

$31.39 billion

$28 billion offered

Indirect bidders

71.1%

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 24 April 2014 to 29 March 2017; the latest at 2.215%.1.3%1.5%1.8%2.0%2.3%2.5%2014201520162017This auction, 2.215%High yield at the last 36 7-year note auctions36 auctions from 24 April 2014 to 29 March 2017; the latest at 2.215%.1.3%1.5%1.8%2.0%2.3%2.5%2015201620172.215%

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
2.2152.56
2.1972.49
2.3352.45
2.2842.54
2.2152.68
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.562.513 of 128 of 12
High yield2.2151.6432 of 129 of 12
Indirect bidders' share71.164.32 of 1210 of 12
Direct bidders' share8.410.910 of 122 of 12
Primary dealers' share20.525.08 of 124 of 12
High minus median, basis points4.04.610 of 122 of 12

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

Who bought the 7-year note?

Indirect bidders took 71.1% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 23 February 2017

Indirect bidders took 71.1% of the competitive bids acceptedIndirect bidders 71.1%, Direct bidders 8.4%, Primary dealers 20.5%Indirect bidders71.1%63.8%Direct bidders8.4%11.4%Primary dealers20.5%24.8%Indirect bidders took 71.1% of the competitive bids acceptedIndirect bidders 71.1%, Direct bidders 8.4%, Primary dealers 20.5%Indirect bidders71.1%63.8%Direct bidders8.4%11.4%Primary dealers20.5%24.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders71.163.8
Direct bidders8.411.4
Primary dealers20.524.8

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$75,167,917,400
Sold$31,389,847,400
Competitive bids accepted$27,987,754,000
Non-competitive bids accepted$12,254,000
Federal Reserve (SOMA) add-on$3,389,839,400
Foreign and international (FIMA) non-competitive$0
High yield, %2.215
Median rate, %2.175
Low rate, %1.888
Interest rate (coupon), %2.125
Bids at the high rate filled, %19.22
Bid-to-cover ratio2.56
Indirect bidders accepted$19,900,874,000
Direct bidders accepted$2,350,000,000
Primary dealers accepted$5,736,880,000
Indirect bidders' share, % (ours)71.1
Direct bidders' share, % (ours)8.4
Primary dealers' share, % (ours)20.5
High minus median, basis points (ours)4.0
Treasury par yield curve, 7-year point, same day, %2.21
High yield minus that point, basis points (ours)0.5

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 auctions4 of 2419 of 242.50
Bid-to-cover ratio2.56All 99 since 26 February 200961 of 9935 of 992.62
High yield2.215Last 24 auctions2 of 2421 of 241.816
High yield2.215Since 26 February 200935 of 9963 of 992.013
High yield2.215All 148 since 6 February 198084 of 14863 of 1482.384
Indirect bidders' share71.1Last 24 auctions2 of 2422 of 2460.4
Indirect bidders' share71.1All 99 since 26 February 20092 of 9997 of 9947.8
Direct bidders' share8.4Last 24 auctions22 of 242 of 2412.6
Direct bidders' share8.4All 99 since 26 February 200977 of 9922 of 9912.8
Primary dealers' share20.5Last 24 auctions19 of 245 of 2427.7
Primary dealers' share20.5All 99 since 26 February 200994 of 995 of 9937.8
High minus median, basis points4.0Last 24 auctions15 of 246 of 244.4
High minus median, basis points4.0Since 26 February 200955 of 9935 of 994.4
High minus median, basis points4.0All 148 since 6 February 198060 of 14875 of 1483.9

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 29 March 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170329_2.pdf. Compiled by 500metrics, "7-year note auction of 29 March 2017 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2017-03-29.

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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