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7-year note auction of 27 November 2017 (reopening)

The 7-year note sold $35.845 billion at a high yield of 2.066% on , with a bid-to-cover ratio of 2.46.

Coupon
2.000%
Announced
Issued
Matures

High yield

2.066%

Median yield 2.030%

Bid-to-cover

2.46

▲ +0.07 since 26 Oct

Sold

$35.85 billion

$34 billion offered

Indirect bidders

65.8%

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 29 January 2015 to 27 November 2017; the latest at 2.066%.1.0%1.5%2.0%2.5%201520162017This auction, 2.066%High yield at the last 36 7-year note auctions36 auctions from 29 January 2015 to 27 November 2017; the latest at 2.066%.1.0%1.5%2.0%2.5%201620172.066%

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
2.0662.46
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.462.548 of 122 of 12
High yield2.0662.1288 of 124 of 12
Indirect bidders' share65.866.66 of 126 of 12
Direct bidders' share11.411.58 of 124 of 12
Primary dealers' share22.820.64 of 128 of 12
High minus median, basis points3.64.511 of 121 of 12

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

Who bought the 7-year note?

Indirect bidders took 65.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 26 October 2017

Indirect bidders took 65.8% of the competitive bids acceptedIndirect bidders 65.8%, Direct bidders 11.4%, Primary dealers 22.8%Indirect bidders65.8%63.4%Direct bidders11.4%13.3%Primary dealers22.8%23.2%Indirect bidders took 65.8% of the competitive bids acceptedIndirect bidders 65.8%, Direct bidders 11.4%, Primary dealers 22.8%Indirect bidders65.8%63.4%Direct bidders11.4%13.3%Primary dealers22.8%23.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders65.863.4
Direct bidders11.413.3
Primary dealers22.823.2

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as5-Year, reopening
Offering amount$34,000,000,000
Bids received$85,497,229,800
Sold$35,845,019,800
Competitive bids accepted$33,972,587,000
Non-competitive bids accepted$27,435,500
Federal Reserve (SOMA) add-on$1,844,997,300
Foreign and international (FIMA) non-competitive$0
High yield, %2.066
Median rate, %2.030
Low rate, %1.900
Interest rate (coupon), %2.000
Bids at the high rate filled, %12.97
Bid-to-cover ratio2.46
Indirect bidders accepted$22,355,797,000
Direct bidders accepted$3,858,000,000
Primary dealers accepted$7,758,790,000
Indirect bidders' share, % (ours)65.8
Direct bidders' share, % (ours)11.4
Primary dealers' share, % (ours)22.8
High minus median, basis points (ours)3.6
Treasury par yield curve, 5-year point, same day, %2.06
High yield minus that point, basis points (ours)0.6

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 (5-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 ratio2.46Last 24 auctions17 of 245 of 242.52
Bid-to-cover ratio2.46All 108 since 26 February 200986 of 10819 of 1082.61
High yield2.066Last 24 auctions10 of 2414 of 241.998
High yield2.066Since 26 February 200949 of 10859 of 1082.024
High yield2.066All 157 since 6 February 198098 of 15759 of 1572.280
Indirect bidders' share65.8Last 24 auctions8 of 2416 of 2465.0
Indirect bidders' share65.8All 108 since 26 February 20099 of 10899 of 10849.3
Direct bidders' share11.4Last 24 auctions15 of 249 of 2412.4
Direct bidders' share11.4All 108 since 26 February 200969 of 10839 of 10812.8
Primary dealers' share22.8Last 24 auctions12 of 2412 of 2422.4
Primary dealers' share22.8All 108 since 26 February 200996 of 10812 of 10837.2
High minus median, basis points3.6Last 24 auctions22 of 242 of 244.6
High minus median, basis points3.6Since 26 February 200984 of 10822 of 1084.4
High minus median, basis points3.6All 157 since 6 February 198093 of 15762 of 1574.0

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 November 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20171127_4.pdf. Compiled by 500metrics, "7-year note auction of 27 November 2017 (reopening)", https://500metrics.com/treasury/auctions/7-year-note/2017-11-27.

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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