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7-year note auction of 26 October 2017 (new issue)

The 7-year note sold $28.7 billion at a high yield of 2.280% on , with a bid-to-cover ratio of 2.39.

Coupon
2.250%
Announced
Issued
Matures

High yield

2.280%

Median yield 2.220%

Bid-to-cover

2.39

▼ −0.31 since 28 Sep

Sold

$28.70 billion

$28 billion offered

Indirect bidders

63.4%

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 24 December 2014 to 26 October 2017; the latest at 2.280%.1.0%1.5%2.0%2.5%201520162017This auction, 2.280%High yield at the last 36 7-year note auctions36 auctions from 24 December 2014 to 26 October 2017; the latest at 2.280%.1.0%1.5%2.0%2.5%201620172.280%

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
2.2802.39
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.392.5412 of 120 of 12
High yield2.2802.1282 of 1210 of 12
Indirect bidders' share63.468.310 of 122 of 12
Direct bidders' share13.311.44 of 128 of 12
Primary dealers' share23.220.63 of 129 of 12
High minus median, basis points6.04.40 of 1211 of 12

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

  • Bid-to-cover ratio: Lowest for a 7-year note since 25 August 2016 (14 auctions in between).

Who bought the 7-year note?

Indirect bidders took 63.4% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 28 September 2017

Indirect bidders took 63.4% of the competitive bids acceptedIndirect bidders 63.4%, Direct bidders 13.3%, Primary dealers 23.2%Indirect bidders63.4%70.6%Direct bidders13.3%19.0%Primary dealers23.2%10.4%Indirect bidders took 63.4% of the competitive bids acceptedIndirect bidders 63.4%, Direct bidders 13.3%, Primary dealers 23.2%Indirect bidders63.4%70.6%Direct bidders13.3%19.0%Primary dealers23.2%10.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders63.470.6
Direct bidders13.319.0
Primary dealers23.210.4

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$67,647,331,100
Sold$28,700,455,100
Competitive bids accepted$27,988,839,000
Non-competitive bids accepted$11,232,700
Federal Reserve (SOMA) add-on$700,383,400
Foreign and international (FIMA) non-competitive$0
High yield, %2.280
Median rate, %2.220
Low rate, %2.170
Interest rate (coupon), %2.250
Bids at the high rate filled, %59.49
Bid-to-cover ratio2.39
Indirect bidders accepted$17,758,822,500
Direct bidders accepted$3,726,490,000
Primary dealers accepted$6,503,526,500
Indirect bidders' share, % (ours)63.4
Direct bidders' share, % (ours)13.3
Primary dealers' share, % (ours)23.2
High minus median, basis points (ours)6.0
Treasury par yield curve, 7-year point, same day, %2.30
High yield minus that point, basis points (ours)-2.0

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 ratio2.39Last 24 auctions21 of 243 of 242.52
Bid-to-cover ratio2.39All 107 since 26 February 200995 of 10711 of 1072.61
High yield2.280Last 24 auctions2 of 2422 of 241.977
High yield2.280Since 26 February 200929 of 10777 of 1072.021
High yield2.280All 156 since 6 February 198078 of 15677 of 1562.282
Indirect bidders' share63.4Last 24 auctions15 of 249 of 2465.0
Indirect bidders' share63.4All 107 since 26 February 200917 of 10790 of 10749.1
Direct bidders' share13.3Last 24 auctions11 of 2413 of 2412.4
Direct bidders' share13.3All 107 since 26 February 200948 of 10759 of 10712.7
Primary dealers' share23.2Last 24 auctions12 of 2412 of 2423.2
Primary dealers' share23.2All 107 since 26 February 200995 of 10712 of 10737.2
High minus median, basis points6.0Last 24 auctions0 of 2423 of 244.4
High minus median, basis points6.0Since 26 February 200921 of 10785 of 1074.3
High minus median, basis points6.0All 156 since 6 February 198023 of 156130 of 1564.0

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 26 October 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20171026_1.pdf. Compiled by 500metrics, "7-year note auction of 26 October 2017 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2017-10-26.

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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