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7-year note auction of 27 September 2018 (new issue)

The 7-year note sold $31 billion at a high yield of 3.034% on , with a bid-to-cover ratio of 2.45.

Coupon
3.000%
Announced
Issued
Matures

High yield

3.034%

Median yield 2.985%

Bid-to-cover

2.45

▼ −0.20 since 29 Aug

Sold

$31.00 billion

$31 billion offered

Indirect bidders

62.0%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 29 April 2010

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 29 April 201036 auctions from 28 January 2016 to 27 September 2018; the latest at 3.034%.1.0%1.5%2.0%2.5%3.0%3.5%201620172018This auction, 3.034%The high yield was the highest for a 7-year note since 29 April 201036 auctions from 28 January 2016 to 27 September 2018; the latest at 3.034%.1.0%1.5%2.0%2.5%3.0%3.5%201720183.034%

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
3.0342.45
2.8442.65
2.9302.49
2.8092.53
2.9302.62
2.9522.56
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.452.519 of 123 of 12
High yield3.0342.7640 of 1212 of 12
Indirect bidders' share62.061.46 of 126 of 12
Direct bidders' share12.812.86 of 126 of 12
Primary dealers' share25.323.14 of 128 of 12
High minus median, basis points4.95.06 of 125 of 12

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

Who bought the 7-year note?

Indirect bidders took 62.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 29 August 2018

Indirect bidders took 62.0% of the competitive bids acceptedIndirect bidders 62.0%, Direct bidders 12.8%, Primary dealers 25.3%Indirect bidders62.0%59.5%Direct bidders12.8%19.0%Primary dealers25.3%21.5%Indirect bidders took 62.0% of the competitive bids acceptedIndirect bidders 62.0%, Direct bidders 12.8%, Primary dealers 25.3%Indirect bidders62.0%59.5%Direct bidders12.8%19.0%Primary dealers25.3%21.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders62.059.5
Direct bidders12.819.0
Primary dealers25.321.5

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$31,000,000,000
Bids received$75,914,775,500
Sold$31,000,048,300
Competitive bids accepted$30,976,622,800
Non-competitive bids accepted$23,425,500
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %3.034
Median rate, %2.985
Low rate, %2.588
Interest rate (coupon), %3.000
Bids at the high rate filled, %15.76
Bid-to-cover ratio2.45
Indirect bidders accepted$19,191,726,800
Direct bidders accepted$3,956,400,000
Primary dealers accepted$7,828,496,000
Indirect bidders' share, % (ours)62.0
Direct bidders' share, % (ours)12.8
Primary dealers' share, % (ours)25.3
High minus median, basis points (ours)4.9
Treasury par yield curve, 7-year point, same day, %3.02
High yield minus that point, basis points (ours)1.4

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 ratio2.45Last 24 auctions19 of 244 of 242.54
Bid-to-cover ratio2.45All 120 since 26 February 200998 of 12020 of 1202.60
High yield3.034Last 24 auctions0 of 2424 of 242.262
High yield3.034Since 26 February 200910 of 120110 of 1202.075
High yield3.034All 169 since 6 February 198059 of 169110 of 1692.335
Indirect bidders' share62.0Last 24 auctions16 of 248 of 2464.3
Indirect bidders' share62.0All 120 since 26 February 200928 of 12092 of 12050.4
Direct bidders' share12.8Last 24 auctions11 of 2413 of 2412.4
Direct bidders' share12.8All 120 since 26 February 200960 of 12060 of 12012.8
Primary dealers' share25.3Last 24 auctions5 of 2419 of 2421.9
Primary dealers' share25.3All 120 since 26 February 200996 of 12024 of 12036.8
High minus median, basis points4.9Last 24 auctions10 of 2413 of 244.6
High minus median, basis points4.9Since 26 February 200943 of 12076 of 1204.4
High minus median, basis points4.9All 169 since 6 February 198048 of 169120 of 1694.0

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 September 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180927_1.pdf. Compiled by 500metrics, "7-year note auction of 27 September 2018 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2018-09-27.

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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