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

The 7-year note sold $31.66 billion at a high yield of 2.370% on , with a bid-to-cover ratio of 2.55.

Coupon
2.250%
Announced
Issued
Matures

High yield

2.370%

Median yield 2.320%

Bid-to-cover

2.55

▲ +0.19 since 27 Dec

Sold

$31.66 billion

$28 billion offered

Indirect bidders

60.5%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 19 December 2013

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 19 December 201336 auctions from 29 April 2015 to 28 December 2017; the latest at 2.370%.1.0%1.5%2.0%2.5%201520162017This auction, 2.370%The high yield was the highest for a 7-year note since 19 December 201336 auctions from 29 April 2015 to 28 December 2017; the latest at 2.370%.1.0%1.5%2.0%2.5%201620172.370%

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
2.3702.55
2.2452.36
2.2302.36
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.552.504 of 128 of 12
High yield2.3702.1050 of 1212 of 12
Indirect bidders' share60.565.69 of 123 of 12
Direct bidders' share13.111.55 of 127 of 12
Primary dealers' share26.422.23 of 129 of 12
High minus median, basis points5.04.44 of 127 of 12

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

Who bought the 7-year note?

Indirect bidders took 60.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 December 2017

Indirect bidders took 60.5% of the competitive bids acceptedIndirect bidders 60.5%, Direct bidders 13.1%, Primary dealers 26.4%Indirect bidders60.5%58.4%Direct bidders13.1%7.9%Primary dealers26.4%33.7%Indirect bidders took 60.5% of the competitive bids acceptedIndirect bidders 60.5%, Direct bidders 13.1%, Primary dealers 26.4%Indirect bidders60.5%58.4%Direct bidders13.1%7.9%Primary dealers26.4%33.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders60.558.4
Direct bidders13.17.9
Primary dealers26.433.7

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$75,006,937,100
Sold$31,660,304,600
Competitive bids accepted$27,991,938,500
Non-competitive bids accepted$8,127,600
Federal Reserve (SOMA) add-on$3,660,238,500
Foreign and international (FIMA) non-competitive$0
High yield, %2.370
Median rate, %2.320
Low rate, %1.888
Interest rate (coupon), %2.250
Bids at the high rate filled, %57.43
Bid-to-cover ratio2.55
Indirect bidders accepted$16,931,001,000
Direct bidders accepted$3,678,430,000
Primary dealers accepted$7,382,507,500
Indirect bidders' share, % (ours)60.5
Direct bidders' share, % (ours)13.1
Primary dealers' share, % (ours)26.4
High minus median, basis points (ours)5.0
Treasury par yield curve, 7-year point, same day, %2.36
High yield minus that point, basis points (ours)1.0

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 ratio2.55Last 24 auctions8 of 2416 of 242.51
Bid-to-cover ratio2.55All 111 since 26 February 200968 of 11142 of 1112.61
High yield2.370Last 24 auctions0 of 2424 of 242.063
High yield2.370Since 26 February 200926 of 11185 of 1112.045
High yield2.370All 160 since 6 February 198075 of 16085 of 1602.269
Indirect bidders' share60.5Last 24 auctions18 of 246 of 2465.0
Indirect bidders' share60.5All 111 since 26 February 200927 of 11184 of 11149.7
Direct bidders' share13.1Last 24 auctions10 of 2414 of 2411.4
Direct bidders' share13.1All 111 since 26 February 200951 of 11160 of 11112.7
Primary dealers' share26.4Last 24 auctions7 of 2417 of 2423.0
Primary dealers' share26.4All 111 since 26 February 200991 of 11120 of 11137.1
High minus median, basis points5.0Last 24 auctions8 of 2415 of 244.6
High minus median, basis points5.0Since 26 February 200938 of 11172 of 1114.4
High minus median, basis points5.0All 160 since 6 February 198042 of 160116 of 1604.0

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 December 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20171228_1.pdf. Compiled by 500metrics, "7-year note auction of 28 December 2017 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2017-12-28.

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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