500metrics

All sources checked Checked

7-year note auction of 27 April 2017 (new issue)

The 7-year note sold $31.822 billion at a high yield of 2.084% on , with a bid-to-cover ratio of 2.73.

Coupon
2.000%
Announced
Issued
Matures

High yield

2.084%

Median yield 2.050%

Bid-to-cover

2.73

▼ −0.12 since 25 Apr

Sold

$31.82 billion

$28 billion offered

Indirect bidders

81.7%

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 June 2014 to 27 April 2017; the latest at 2.084%.1.0%1.5%2.0%2.5%2014201520162017This auction, 2.084%High yield at the last 36 7-year note auctions36 auctions from 26 June 2014 to 27 April 2017; the latest at 2.084%.1.0%1.5%2.0%2.5%2015201620172.084%

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
2.0842.73
1.2802.85
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.732.521 of 1211 of 12
High yield2.0841.6525 of 127 of 12
Indirect bidders' share81.764.30 of 1212 of 12
Direct bidders' share9.510.47 of 125 of 12
Primary dealers' share8.825.012 of 120 of 12
High minus median, basis points3.44.612 of 120 of 12

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

  • Indirect bidders' share: Highest of all 101 earlier 7-year note auctions we hold.
  • Primary dealers' share: Lowest of all 101 earlier 7-year note auctions we hold.
  • High minus median, basis points: Lowest for a 7-year note since 28 April 2016 (12 auctions in between).

Who bought the 7-year note?

Indirect bidders took 81.7% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 April 2017

Indirect bidders took 81.7% of the competitive bids acceptedIndirect bidders 81.7%, Direct bidders 9.5%, Primary dealers 8.8%Indirect bidders81.7%58.9%Direct bidders9.5%11.4%Primary dealers8.8%29.7%Indirect bidders took 81.7% of the competitive bids acceptedIndirect bidders 81.7%, Direct bidders 9.5%, Primary dealers 8.8%Indirect bidders81.7%58.9%Direct bidders9.5%11.4%Primary dealers8.8%29.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders81.758.9
Direct bidders9.511.4
Primary dealers8.829.7

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$80,343,580,100
Sold$31,821,585,100
Competitive bids accepted$27,991,657,000
Non-competitive bids accepted$8,347,000
Federal Reserve (SOMA) add-on$3,821,581,100
Foreign and international (FIMA) non-competitive$0
High yield, %2.084
Median rate, %2.050
Low rate, %1.888
Interest rate (coupon), %2.000
Bids at the high rate filled, %11.62
Bid-to-cover ratio2.73
Indirect bidders accepted$22,865,772,000
Direct bidders accepted$2,669,000,000
Primary dealers accepted$2,456,885,000
Indirect bidders' share, % (ours)81.7
Direct bidders' share, % (ours)9.5
Primary dealers' share, % (ours)8.8
High minus median, basis points (ours)3.4
Treasury par yield curve, 7-year point, same day, %2.10
High yield minus that point, basis points (ours)-1.6

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 ratio2.73Last 24 auctions1 of 2423 of 242.51
Bid-to-cover ratio2.73All 101 since 26 February 200927 of 10173 of 1012.62
High yield2.084Last 24 auctions7 of 2417 of 241.849
High yield2.084Since 26 February 200945 of 10156 of 1012.013
High yield2.084All 150 since 6 February 198094 of 15056 of 1502.360
Indirect bidders' share81.7Last 24 auctions0 of 2424 of 2461.9
Indirect bidders' share81.7All 101 since 26 February 20090 of 101101 of 10148.3
Direct bidders' share9.5Last 24 auctions18 of 246 of 2412.0
Direct bidders' share9.5All 101 since 26 February 200970 of 10131 of 10112.7
Primary dealers' share8.8Last 24 auctions24 of 240 of 2426.8
Primary dealers' share8.8All 101 since 26 February 2009101 of 1010 of 10137.6
High minus median, basis points3.4Last 24 auctions21 of 242 of 244.4
High minus median, basis points3.4Since 26 February 200982 of 10117 of 1014.4
High minus median, basis points3.4All 150 since 6 February 198091 of 15057 of 1504.0

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 April 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170427_1.pdf. Compiled by 500metrics, "7-year note auction of 27 April 2017 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2017-04-27.

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

Our text and compilation: CC BY 4.0. How to reuse and cite this page.