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7-year note auction of 27 March 2019 (reopening)

The 7-year note sold $41 billion at a high yield of 2.172% on , with a bid-to-cover ratio of 2.35.

Coupon
2.125%
Announced
Issued
Matures

High yield

2.172%

Median yield 2.125%

Bid-to-cover

2.35

▼ −0.25 since 26 Mar

Sold

$41.00 billion

$41 billion offered

Indirect bidders

59.0%

Of competitive bids accepted

The high yield was the lowest for a 7-year note since 27 November 2017

High yield at each 7-year note auction, %

The high yield was the lowest for a 7-year note since 27 November 201736 auctions from 25 August 2016 to 27 March 2019; the latest at 2.172%.1.0%1.5%2.0%2.5%3.0%3.5%2016201720182019This auction, 2.172%The high yield was the lowest for a 7-year note since 27 November 201736 auctions from 25 August 2016 to 27 March 2019; the latest at 2.172%.1.5%2.0%2.5%3.0%3.5%2017201820192.172%

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
2.1722.35
2.2612.60
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.352.5412 of 120 of 12
High yield2.1722.88712 of 120 of 12
Indirect bidders' share59.061.38 of 124 of 12
Direct bidders' share17.213.94 of 128 of 12
Primary dealers' share23.821.64 of 128 of 12
High minus median, basis points4.74.04 of 128 of 12

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

  • Bid-to-cover ratio: Lowest for a 7-year note since 28 March 2018 (12 auctions in between).

Who bought the 7-year note?

Indirect bidders took 59.0% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 26 March 2019

Indirect bidders took 59.0% of the competitive bids acceptedIndirect bidders 59.0%, Direct bidders 17.2%, Primary dealers 23.8%Indirect bidders59.0%56.0%Direct bidders17.2%13.3%Primary dealers23.8%30.7%Indirect bidders took 59.0% of the competitive bids acceptedIndirect bidders 59.0%, Direct bidders 17.2%, Primary dealers 23.8%Indirect bidders59.0%56.0%Direct bidders17.2%13.3%Primary dealers23.8%30.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders59.056.0
Direct bidders17.213.3
Primary dealers23.830.7

About these figures

Treasury's full result, how to read it, its limits and sources

Treasury's published result

FieldValue
Offered as5-Year, reopening
Offering amount$41,000,000,000
Bids received$96,289,633,900
Sold$41,000,021,100
Competitive bids accepted$40,968,002,200
Non-competitive bids accepted$32,018,900
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.172
Median rate, %2.125
Low rate, %2.050
Interest rate (coupon), %2.125
Bids at the high rate filled, %76.16
Bid-to-cover ratio2.35
Indirect bidders accepted$24,168,002,200
Direct bidders accepted$7,063,000,000
Primary dealers accepted$9,737,000,000
Indirect bidders' share, % (ours)59.0
Direct bidders' share, % (ours)17.2
Primary dealers' share, % (ours)23.8
High minus median, basis points (ours)4.7
Treasury par yield curve, 5-year point, same day, %2.18
High yield minus that point, basis points (ours)-0.8

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 (5-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 ratio2.35Last 24 auctions23 of 241 of 242.51
Bid-to-cover ratio2.35All 127 since 26 February 2009120 of 1277 of 1272.60
High yield2.172Last 24 auctions19 of 245 of 242.595
High yield2.172Since 26 February 200958 of 12769 of 1272.125
High yield2.172All 176 since 6 February 1980107 of 17669 of 1762.384
Indirect bidders' share59.0Last 24 auctions17 of 247 of 2462.8
Indirect bidders' share59.0All 127 since 26 February 200941 of 12786 of 12751.1
Direct bidders' share17.2Last 24 auctions5 of 2419 of 2413.2
Direct bidders' share17.2All 127 since 26 February 200927 of 127100 of 12712.8
Primary dealers' share23.8Last 24 auctions9 of 2415 of 2422.5
Primary dealers' share23.8All 127 since 26 February 2009102 of 12725 of 12735.6
High minus median, basis points4.7Last 24 auctions10 of 2414 of 244.3
High minus median, basis points4.7Since 26 February 200948 of 12777 of 1274.4
High minus median, basis points4.7All 176 since 6 February 198053 of 176121 of 1764.0

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 March 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20190327_2.pdf. Compiled by 500metrics, "7-year note auction of 27 March 2019 (reopening)", https://500metrics.com/treasury/auctions/7-year-note/2019-03-27.

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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