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7-year note auction of 27 November 2019 (new issue)

The 7-year note sold $34.54 billion at a high yield of 1.719% on , with a bid-to-cover ratio of 2.44.

Coupon
1.625%
Announced
Issued
Matures

High yield

1.719%

Median yield 1.666%

Bid-to-cover

2.44

▼ −0.02 since 24 Oct

Sold

$34.54 billion

$32 billion offered

Indirect bidders

69.6%

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 28 June 2017 to 27 November 2019; the latest at 1.719%.1.0%1.5%2.0%2.5%3.0%3.5%201720182019This auction, 1.719%High yield at the last 36 7-year note auctions36 auctions from 28 June 2017 to 27 November 2019; the latest at 1.719%.1.0%1.5%2.0%2.5%3.0%3.5%201820191.719%

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
1.7192.44
1.6572.46
1.6332.49
1.4892.16
1.9672.27
1.8892.44
2.1442.30
2.0652.38
2.4262.49
2.3552.51
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.442.456 of 125 of 12
High yield1.7192.1049 of 123 of 12
Indirect bidders' share69.658.60 of 1212 of 12
Direct bidders' share10.115.912 of 120 of 12
Primary dealers' share20.324.08 of 124 of 12
High minus median, basis points5.34.22 of 1210 of 12

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

  • Indirect bidders' share: Highest for a 7-year note since 25 January 2018 (25 auctions in between).
  • Direct bidders' share: Lowest for a 7-year note since 25 October 2018 (16 auctions in between).

Who bought the 7-year note?

Indirect bidders took 69.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 24 October 2019

Indirect bidders took 69.6% of the competitive bids acceptedIndirect bidders 69.6%, Direct bidders 10.1%, Primary dealers 20.3%Indirect bidders69.6%65.4%Direct bidders10.1%14.5%Primary dealers20.3%20.1%Indirect bidders took 69.6% of the competitive bids acceptedIndirect bidders 69.6%, Direct bidders 10.1%, Primary dealers 20.3%Indirect bidders69.6%65.4%Direct bidders10.1%14.5%Primary dealers20.3%20.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders69.665.4
Direct bidders10.114.5
Primary dealers20.320.1

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$80,676,350,600
Sold$34,540,488,100
Competitive bids accepted$31,993,382,500
Non-competitive bids accepted$6,679,400
Federal Reserve (SOMA) add-on$2,540,426,200
Foreign and international (FIMA) non-competitive$0
High yield, %1.719
Median rate, %1.666
Low rate, %0.880
Interest rate (coupon), %1.625
Bids at the high rate filled, %94.53
Bid-to-cover ratio2.44
Indirect bidders accepted$22,278,000,000
Direct bidders accepted$3,216,365,000
Primary dealers accepted$6,499,017,500
Indirect bidders' share, % (ours)69.6
Direct bidders' share, % (ours)10.1
Primary dealers' share, % (ours)20.3
High minus median, basis points (ours)5.3
Treasury par yield curve, 7-year point, same day, %1.71
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 ratio2.44Last 24 auctions16 of 247 of 242.49
Bid-to-cover ratio2.44All 138 since 26 February 2009111 of 13824 of 1382.56
High yield1.719Last 24 auctions21 of 243 of 242.482
High yield1.719Since 26 February 2009101 of 13837 of 1382.116
High yield1.719All 187 since 6 February 1980150 of 18737 of 1872.317
Indirect bidders' share69.6Last 24 auctions0 of 2424 of 2459.4
Indirect bidders' share69.6All 138 since 26 February 20096 of 138132 of 13852.2
Direct bidders' share10.1Last 24 auctions23 of 241 of 2415.5
Direct bidders' share10.1All 138 since 26 February 2009100 of 13838 of 13813.2
Primary dealers' share20.3Last 24 auctions16 of 248 of 2422.5
Primary dealers' share20.3All 138 since 26 February 2009121 of 13817 of 13834.2
High minus median, basis points5.3Last 24 auctions3 of 2421 of 244.2
High minus median, basis points5.3Since 26 February 200937 of 13898 of 1384.4
High minus median, basis points5.3All 187 since 6 February 198041 of 187143 of 1874.0

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 November 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20191127_3.pdf. Compiled by 500metrics, "7-year note auction of 27 November 2019 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2019-11-27.

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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