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

The 7-year note sold $34.81 billion at a high yield of 2.974% on , with a bid-to-cover ratio of 2.55.

Coupon
2.875%
Announced
Issued
Matures

High yield

2.974%

Median yield 2.939%

Bid-to-cover

2.55

▲ +0.16 since 25 Oct

Sold

$34.81 billion

$32 billion offered

Indirect bidders

56.6%

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 March 2016 to 28 November 2018; the latest at 2.974%.1.0%1.5%2.0%2.5%3.0%3.5%201620172018This auction, 2.974%High yield at the last 36 7-year note auctions36 auctions from 30 March 2016 to 28 November 2018; the latest at 2.974%.1.0%1.5%2.0%2.5%3.0%3.5%201720182.974%

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
2.9742.55
3.0742.39
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.552.514 of 127 of 12
High yield2.9742.8422 of 1210 of 12
Indirect bidders' share56.662.111 of 121 of 12
Direct bidders' share27.012.70 of 1212 of 12
Primary dealers' share16.323.811 of 121 of 12
High minus median, basis points3.55.011 of 121 of 12

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

  • Direct bidders' share: Highest for a 7-year note since 27 March 2014 (58 auctions in between).

Who bought the 7-year note?

Indirect bidders took 56.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 October 2018

Indirect bidders took 56.6% of the competitive bids acceptedIndirect bidders 56.6%, Direct bidders 27.0%, Primary dealers 16.3%Indirect bidders56.6%64.6%Direct bidders27.0%5.2%Primary dealers16.3%30.1%Indirect bidders took 56.6% of the competitive bids acceptedIndirect bidders 56.6%, Direct bidders 27.0%, Primary dealers 16.3%Indirect bidders56.6%64.6%Direct bidders27.0%5.2%Primary dealers16.3%30.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders56.664.6
Direct bidders27.05.2
Primary dealers16.330.1

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$32,000,000,000
Bids received$84,446,368,800
Sold$34,810,090,800
Competitive bids accepted$31,977,842,000
Non-competitive bids accepted$22,173,000
Federal Reserve (SOMA) add-on$2,810,075,800
Foreign and international (FIMA) non-competitive$0
High yield, %2.974
Median rate, %2.939
Low rate, %2.488
Interest rate (coupon), %2.875
Bids at the high rate filled, %21.73
Bid-to-cover ratio2.55
Indirect bidders accepted$18,104,173,500
Direct bidders accepted$8,647,824,500
Primary dealers accepted$5,225,844,000
Indirect bidders' share, % (ours)56.6
Direct bidders' share, % (ours)27.0
Primary dealers' share, % (ours)16.3
High minus median, basis points (ours)3.5
Treasury par yield curve, 7-year point, same day, %2.97
High yield minus that point, basis points (ours)0.4

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 ratio2.55Last 24 auctions8 of 2415 of 242.51
Bid-to-cover ratio2.55All 122 since 26 February 200972 of 12248 of 1222.60
High yield2.974Last 24 auctions2 of 2422 of 242.262
High yield2.974Since 26 February 200913 of 122109 of 1222.094
High yield2.974All 171 since 6 February 198062 of 171109 of 1712.370
Indirect bidders' share56.6Last 24 auctions23 of 241 of 2464.2
Indirect bidders' share56.6All 122 since 26 February 200947 of 12275 of 12250.7
Direct bidders' share27.0Last 24 auctions0 of 2424 of 2412.4
Direct bidders' share27.0All 122 since 26 February 20091 of 122121 of 12212.8
Primary dealers' share16.3Last 24 auctions20 of 244 of 2423.0
Primary dealers' share16.3All 122 since 26 February 2009117 of 1225 of 12236.6
High minus median, basis points3.5Last 24 auctions22 of 242 of 244.9
High minus median, basis points3.5Since 26 February 200999 of 12221 of 1224.4
High minus median, basis points3.5All 171 since 6 February 1980108 of 17161 of 1714.0

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 November 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20181128_2.pdf. Compiled by 500metrics, "7-year note auction of 28 November 2018 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2018-11-28.

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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