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7-year note auction of 26 February 2019 (new issue)

The 7-year note sold $33.54 billion at a high yield of 2.538% on , with a bid-to-cover ratio of 2.60.

Coupon
2.500%
Announced
Issued
Matures

High yield

2.538%

Median yield 2.500%

Bid-to-cover

2.60

▲ +0.06 since 29 Jan

Sold

$33.54 billion

$32 billion offered

Indirect bidders

55.2%

Of competitive bids accepted

The high yield was the lowest for a 7-year note since 28 December 2017

High yield at each 7-year note auction, %

The high yield was the lowest for a 7-year note since 28 December 201736 auctions from 22 June 2016 to 26 February 2019; the latest at 2.538%.1.0%1.5%2.0%2.5%3.0%3.5%2016201720182019This auction, 2.538%The high yield was the lowest for a 7-year note since 28 December 201736 auctions from 22 June 2016 to 26 February 2019; the latest at 2.538%.1.5%2.0%2.5%3.0%3.5%2017201820192.538%

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
2.5382.60
2.6252.54
2.6802.46
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.602.512 of 1210 of 12
High yield2.5382.88712 of 120 of 12
Indirect bidders' share55.262.112 of 120 of 12
Direct bidders' share28.413.80 of 1212 of 12
Primary dealers' share16.421.911 of 121 of 12
High minus median, basis points3.84.79 of 123 of 12

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

  • Indirect bidders' share: Lowest for a 7-year note since 26 February 2016 (38 auctions in between).
  • Direct bidders' share: Highest for a 7-year note since 27 March 2014 (61 auctions in between).

Who bought the 7-year note?

Indirect bidders took 55.2% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 29 January 2019

Indirect bidders took 55.2% of the competitive bids acceptedIndirect bidders 55.2%, Direct bidders 28.4%, Primary dealers 16.4%Indirect bidders55.2%58.3%Direct bidders28.4%24.9%Primary dealers16.4%16.8%Indirect bidders took 55.2% of the competitive bids acceptedIndirect bidders 55.2%, Direct bidders 28.4%, Primary dealers 16.4%Indirect bidders55.2%58.3%Direct bidders28.4%24.9%Primary dealers16.4%16.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders55.258.3
Direct bidders28.424.9
Primary dealers16.416.8

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$84,675,746,800
Sold$33,540,102,000
Competitive bids accepted$31,983,000,200
Non-competitive bids accepted$17,077,400
Federal Reserve (SOMA) add-on$1,540,024,400
Foreign and international (FIMA) non-competitive$0
High yield, %2.538
Median rate, %2.500
Low rate, %2.441
Interest rate (coupon), %2.500
Bids at the high rate filled, %47.52
Bid-to-cover ratio2.60
Indirect bidders accepted$17,646,765,000
Direct bidders accepted$9,090,235,200
Primary dealers accepted$5,246,000,000
Indirect bidders' share, % (ours)55.2
Direct bidders' share, % (ours)28.4
Primary dealers' share, % (ours)16.4
High minus median, basis points (ours)3.8
Treasury par yield curve, 7-year point, same day, %2.54
High yield minus that point, basis points (ours)-0.2

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 ratio2.60Last 24 auctions5 of 2419 of 242.51
Bid-to-cover ratio2.60All 125 since 26 February 200959 of 12563 of 1252.59
High yield2.538Last 24 auctions13 of 2411 of 242.595
High yield2.538Since 26 February 200934 of 12591 of 1252.106
High yield2.538All 174 since 6 February 198083 of 17491 of 1742.384
Indirect bidders' share55.2Last 24 auctions24 of 240 of 2464.0
Indirect bidders' share55.2All 125 since 26 February 200954 of 12571 of 12551.0
Direct bidders' share28.4Last 24 auctions0 of 2424 of 2413.0
Direct bidders' share28.4All 125 since 26 February 20091 of 125124 of 12512.8
Primary dealers' share16.4Last 24 auctions19 of 245 of 2421.9
Primary dealers' share16.4All 125 since 26 February 2009119 of 1256 of 12536.0
High minus median, basis points3.8Last 24 auctions18 of 245 of 244.6
High minus median, basis points3.8Since 26 February 200987 of 12532 of 1254.4
High minus median, basis points3.8All 174 since 6 February 198096 of 17472 of 1744.0

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 26 February 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20190226_2.pdf. Compiled by 500metrics, "7-year note auction of 26 February 2019 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2019-02-26.

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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