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7-year note auction of 28 September 2017 (new issue)

The 7-year note sold $31.483 billion at a high yield of 2.130% on , with a bid-to-cover ratio of 2.70.

Coupon
2.125%
Announced
Issued
Matures

High yield

2.130%

Median yield 2.092%

Bid-to-cover

2.70

▲ +0.24 since 29 Aug

Sold

$31.48 billion

$28 billion offered

Indirect bidders

70.6%

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 November 2014 to 28 September 2017; the latest at 2.130%.1.0%1.5%2.0%2.5%201520162017This auction, 2.130%High yield at the last 36 7-year note auctions36 auctions from 26 November 2014 to 28 September 2017; the latest at 2.130%.1.0%1.5%2.0%2.5%201620172.130%

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
2.1302.70
1.9412.46
2.1262.54
2.0562.46
2.0602.54
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.702.542 of 1210 of 12
High yield2.1302.1055 of 127 of 12
Indirect bidders' share70.666.64 of 128 of 12
Direct bidders' share19.011.41 of 1211 of 12
Primary dealers' share10.420.611 of 121 of 12
High minus median, basis points3.84.611 of 121 of 12

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

Who bought the 7-year note?

Indirect bidders took 70.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 29 August 2017

Indirect bidders took 70.6% of the competitive bids acceptedIndirect bidders 70.6%, Direct bidders 19.0%, Primary dealers 10.4%Indirect bidders70.6%68.8%Direct bidders19.0%16.6%Primary dealers10.4%14.6%Indirect bidders took 70.6% of the competitive bids acceptedIndirect bidders 70.6%, Direct bidders 19.0%, Primary dealers 10.4%Indirect bidders70.6%68.8%Direct bidders19.0%16.6%Primary dealers10.4%14.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders70.668.8
Direct bidders19.016.6
Primary dealers10.414.6

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$79,189,289,600
Sold$31,483,105,600
Competitive bids accepted$27,987,167,000
Non-competitive bids accepted$12,919,700
Federal Reserve (SOMA) add-on$3,483,018,900
Foreign and international (FIMA) non-competitive$0
High yield, %2.130
Median rate, %2.092
Low rate, %1.995
Interest rate (coupon), %2.125
Bids at the high rate filled, %11.57
Bid-to-cover ratio2.70
Indirect bidders accepted$19,770,366,500
Direct bidders accepted$5,304,157,000
Primary dealers accepted$2,912,643,500
Indirect bidders' share, % (ours)70.6
Direct bidders' share, % (ours)19.0
Primary dealers' share, % (ours)10.4
High minus median, basis points (ours)3.8
Treasury par yield curve, 7-year point, same day, %2.13
High yield minus that point, basis points (ours)0.0

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 ratio2.70Last 24 auctions2 of 2422 of 242.52
Bid-to-cover ratio2.70All 106 since 26 February 200934 of 10671 of 1062.61
High yield2.130Last 24 auctions6 of 2418 of 241.913
High yield2.130Since 26 February 200942 of 10664 of 1062.020
High yield2.130All 155 since 6 February 198091 of 15564 of 1552.284
Indirect bidders' share70.6Last 24 auctions4 of 2420 of 2464.3
Indirect bidders' share70.6All 106 since 26 February 20094 of 106102 of 10649.0
Direct bidders' share19.0Last 24 auctions1 of 2423 of 2412.4
Direct bidders' share19.0All 106 since 26 February 200916 of 10690 of 10612.5
Primary dealers' share10.4Last 24 auctions23 of 241 of 2424.2
Primary dealers' share10.4All 106 since 26 February 2009105 of 1061 of 10637.3
High minus median, basis points3.8Last 24 auctions21 of 243 of 244.4
High minus median, basis points3.8Since 26 February 200973 of 10628 of 1064.4
High minus median, basis points3.8All 155 since 6 February 198082 of 15568 of 1554.0

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 28 September 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20170928_1.pdf. Compiled by 500metrics, "7-year note auction of 28 September 2017 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2017-09-28.

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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