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

The 7-year note sold $35.012 billion at a high yield of 1.835% on , with a bid-to-cover ratio of 2.47.

Coupon
1.750%
Announced
Issued
Matures

High yield

1.835%

Median yield 1.790%

Bid-to-cover

2.47

▲ +0.03 since 27 Nov

Sold

$35.01 billion

$32 billion offered

Indirect bidders

59.4%

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 27 July 2017 to 26 December 2019; the latest at 1.835%.1.0%1.5%2.0%2.5%3.0%3.5%201720182019This auction, 1.835%High yield at the last 36 7-year note auctions36 auctions from 27 July 2017 to 26 December 2019; the latest at 1.835%.1.0%1.5%2.0%2.5%3.0%3.5%201820191.835%

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
1.8352.47
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.472.444 of 128 of 12
High yield1.8352.0168 of 124 of 12
Indirect bidders' share59.459.25 of 127 of 12
Direct bidders' share23.415.91 of 1211 of 12
Primary dealers' share17.122.211 of 121 of 12
High minus median, basis points4.54.46 of 126 of 12

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

Who bought the 7-year note?

Indirect bidders took 59.4% of the competitive bids accepted

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

Indirect bidders took 59.4% of the competitive bids acceptedIndirect bidders 59.4%, Direct bidders 23.4%, Primary dealers 17.1%Indirect bidders59.4%69.6%Direct bidders23.4%10.1%Primary dealers17.1%20.3%Indirect bidders took 59.4% of the competitive bids acceptedIndirect bidders 59.4%, Direct bidders 23.4%, Primary dealers 17.1%Indirect bidders59.4%69.6%Direct bidders23.4%10.1%Primary dealers17.1%20.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders59.469.6
Direct bidders23.410.1
Primary dealers17.120.3

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$81,924,653,500
Sold$35,011,701,500
Competitive bids accepted$31,992,488,000
Non-competitive bids accepted$7,515,300
Federal Reserve (SOMA) add-on$3,011,698,200
Foreign and international (FIMA) non-competitive$0
High yield, %1.835
Median rate, %1.790
Low rate, %1.288
Interest rate (coupon), %1.750
Bids at the high rate filled, %77.17
Bid-to-cover ratio2.47
Indirect bidders accepted$19,009,717,500
Direct bidders accepted$7,496,109,500
Primary dealers accepted$5,486,661,000
Indirect bidders' share, % (ours)59.4
Direct bidders' share, % (ours)23.4
Primary dealers' share, % (ours)17.1
High minus median, basis points (ours)4.5
Treasury par yield curve, 7-year point, same day, %1.85
High yield minus that point, basis points (ours)-1.5

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 ratio2.47Last 24 auctions13 of 2411 of 242.49
Bid-to-cover ratio2.47All 139 since 26 February 2009100 of 13937 of 1392.56
High yield1.835Last 24 auctions20 of 244 of 242.390
High yield1.835Since 26 February 200995 of 13944 of 1392.106
High yield1.835All 188 since 6 February 1980144 of 18844 of 1882.300
Indirect bidders' share59.4Last 24 auctions13 of 2411 of 2459.9
Indirect bidders' share59.4All 139 since 26 February 200944 of 13995 of 13952.3
Direct bidders' share23.4Last 24 auctions4 of 2420 of 2415.5
Direct bidders' share23.4All 139 since 26 February 20098 of 139131 of 13913.1
Primary dealers' share17.1Last 24 auctions20 of 244 of 2421.6
Primary dealers' share17.1All 139 since 26 February 2009129 of 13910 of 13934.2
High minus median, basis points4.5Last 24 auctions10 of 2413 of 244.2
High minus median, basis points4.5Since 26 February 200960 of 13974 of 1394.4
High minus median, basis points4.5All 188 since 6 February 198065 of 188118 of 1884.0

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 December 2019. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2019/R_20191226_3.pdf. Compiled by 500metrics, "7-year note auction of 26 December 2019 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2019-12-26.

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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