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7-year note auction of 28 March 2018 (new issue)

The 7-year note sold $34.109 billion at a high yield of 2.720% on , with a bid-to-cover ratio of 2.34.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.720%

Median yield 2.670%

Bid-to-cover

2.34

▼ −0.15 since 22 Feb

Sold

$34.11 billion

$29 billion offered

Indirect bidders

55.8%

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 30 July 2015 to 28 March 2018; the latest at 2.720%.1.0%1.5%2.0%2.5%3.0%2015201620172018This auction, 2.720%High yield at the last 36 7-year note auctions36 auctions from 30 July 2015 to 28 March 2018; the latest at 2.720%.1.0%1.5%2.0%2.5%3.0%2016201720182.720%

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
2.7202.34
2.8392.49
2.5652.73
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.342.4812 of 120 of 12
High yield2.7202.1801 of 1211 of 12
Indirect bidders' share55.864.412 of 120 of 12
Direct bidders' share12.113.27 of 125 of 12
Primary dealers' share32.122.51 of 1211 of 12
High minus median, basis points5.04.83 of 127 of 12

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

  • Bid-to-cover ratio: Lowest for a 7-year note since 26 February 2016 (27 auctions in between).
  • Indirect bidders' share: Lowest for a 7-year note since 26 February 2016 (27 auctions in between).

Who bought the 7-year note?

Indirect bidders took 55.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 22 February 2018

Indirect bidders took 55.8% of the competitive bids acceptedIndirect bidders 55.8%, Direct bidders 12.1%, Primary dealers 32.1%Indirect bidders55.8%62.2%Direct bidders12.1%15.6%Primary dealers32.1%22.1%Indirect bidders took 55.8% of the competitive bids acceptedIndirect bidders 55.8%, Direct bidders 12.1%, Primary dealers 32.1%Indirect bidders55.8%62.2%Direct bidders12.1%15.6%Primary dealers32.1%22.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders55.862.2
Direct bidders12.115.6
Primary dealers32.122.1

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$29,000,000,000
Bids received$72,973,986,500
Sold$34,108,590,900
Competitive bids accepted$28,977,509,400
Non-competitive bids accepted$22,525,000
Federal Reserve (SOMA) add-on$5,108,556,500
Foreign and international (FIMA) non-competitive$0
High yield, %2.720
Median rate, %2.670
Low rate, %2.550
Interest rate (coupon), %2.625
Bids at the high rate filled, %4.76
Bid-to-cover ratio2.34
Indirect bidders accepted$16,183,237,000
Direct bidders accepted$3,494,000,000
Primary dealers accepted$9,300,272,400
Indirect bidders' share, % (ours)55.8
Direct bidders' share, % (ours)12.1
Primary dealers' share, % (ours)32.1
High minus median, basis points (ours)5.0
Treasury par yield curve, 7-year point, same day, %2.72
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 ratio2.34Last 24 auctions24 of 240 of 242.50
Bid-to-cover ratio2.34All 114 since 26 February 2009108 of 1145 of 1142.60
High yield2.720Last 24 auctions1 of 2423 of 242.128
High yield2.720Since 26 February 200919 of 11495 of 1142.057
High yield2.720All 163 since 6 February 198068 of 16395 of 1632.280
Indirect bidders' share55.8Last 24 auctions24 of 240 of 2464.7
Indirect bidders' share55.8All 114 since 26 February 200943 of 11471 of 11450.0
Direct bidders' share12.1Last 24 auctions9 of 2415 of 2411.4
Direct bidders' share12.1All 114 since 26 February 200960 of 11454 of 11412.8
Primary dealers' share32.1Last 24 auctions1 of 2423 of 2423.0
Primary dealers' share32.1All 114 since 26 February 200974 of 11440 of 11437.1
High minus median, basis points5.0Last 24 auctions7 of 2415 of 244.6
High minus median, basis points5.0Since 26 February 200938 of 11474 of 1144.4
High minus median, basis points5.0All 163 since 6 February 198042 of 163118 of 1634.0

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 March 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180328_2.pdf. Compiled by 500metrics, "7-year note auction of 28 March 2018 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2018-03-28.

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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