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7-year note auction of 28 March 2019 (new issue)

The 7-year note sold $32 billion at a high yield of 2.281% on , with a bid-to-cover ratio of 2.54.

Coupon
2.250%
Announced
Issued
Matures

High yield

2.281%

Median yield 2.241%

Bid-to-cover

2.54

▲ +0.19 since 27 Mar

Sold

$32.00 billion

$32 billion offered

Indirect bidders

64.5%

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 28 September 2016 to 28 March 2019; the latest at 2.281%.1.0%1.5%2.0%2.5%3.0%3.5%2016201720182019This auction, 2.281%High yield at the last 36 7-year note auctions36 auctions from 28 September 2016 to 28 March 2019; the latest at 2.281%.1.5%2.0%2.5%3.0%3.5%2017201820192.281%

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
2.2812.54
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.542.545 of 126 of 12
High yield2.2812.82610 of 122 of 12
Indirect bidders' share64.560.14 of 128 of 12
Direct bidders' share20.714.93 of 129 of 12
Primary dealers' share14.822.512 of 120 of 12
High minus median, basis points4.04.05 of 126 of 12

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

  • Primary dealers' share: Lowest for a 7-year note since 25 January 2018 (15 auctions in between).

Who bought the 7-year note?

Indirect bidders took 64.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 March 2019

Indirect bidders took 64.5% of the competitive bids acceptedIndirect bidders 64.5%, Direct bidders 20.7%, Primary dealers 14.8%Indirect bidders64.5%59.0%Direct bidders20.7%17.2%Primary dealers14.8%23.8%Indirect bidders took 64.5% of the competitive bids acceptedIndirect bidders 64.5%, Direct bidders 20.7%, Primary dealers 14.8%Indirect bidders64.5%59.0%Direct bidders20.7%17.2%Primary dealers14.8%23.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders64.559.0
Direct bidders20.717.2
Primary dealers14.823.8

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$81,396,560,900
Sold$32,000,000,900
Competitive bids accepted$31,992,200,000
Non-competitive bids accepted$7,800,900
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.281
Median rate, %2.241
Low rate, %2.150
Interest rate (coupon), %2.250
Bids at the high rate filled, %62.72
Bid-to-cover ratio2.54
Indirect bidders accepted$20,631,720,000
Direct bidders accepted$6,627,400,000
Primary dealers accepted$4,733,080,000
Indirect bidders' share, % (ours)64.5
Direct bidders' share, % (ours)20.7
Primary dealers' share, % (ours)14.8
High minus median, basis points (ours)4.0
Treasury par yield curve, 7-year point, same day, %2.29
High yield minus that point, basis points (ours)-0.9

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 ratio2.54Last 24 auctions9 of 2413 of 242.51
Bid-to-cover ratio2.54All 128 since 26 February 200977 of 12846 of 1282.60
High yield2.281Last 24 auctions15 of 249 of 242.595
High yield2.281Since 26 February 200944 of 12884 of 1282.126
High yield2.281All 177 since 6 February 198093 of 17784 of 1772.384
Indirect bidders' share64.5Last 24 auctions10 of 2414 of 2462.1
Indirect bidders' share64.5All 128 since 26 February 200921 of 128107 of 12851.1
Direct bidders' share20.7Last 24 auctions3 of 2421 of 2413.3
Direct bidders' share20.7All 128 since 26 February 20099 of 128119 of 12812.9
Primary dealers' share14.8Last 24 auctions21 of 243 of 2422.5
Primary dealers' share14.8All 128 since 26 February 2009124 of 1284 of 12835.3
High minus median, basis points4.0Last 24 auctions14 of 248 of 244.6
High minus median, basis points4.0Since 26 February 200971 of 12845 of 1284.4
High minus median, basis points4.0All 177 since 6 February 198076 of 17785 of 1774.0

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 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20190328_3.pdf. Compiled by 500metrics, "7-year note auction of 28 March 2019 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2019-03-28.

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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