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7-year note auction of 28 May 2020 (new issue)

The 7-year note sold $41.989 billion at a high yield of 0.553% on , with a bid-to-cover ratio of 2.55.

Coupon
0.500%
Announced
Issued
Matures

High yield

0.553%

Median yield 0.500%

Bid-to-cover

2.55

▼ −0.01 since 28 Apr

Sold

$41.99 billion

$38 billion offered

Indirect bidders

63.6%

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 November 2017 to 28 May 2020; the latest at 0.553%.0.0%1.0%2.0%3.0%4.0%2017201820192020This auction, 0.553%High yield at the last 36 7-year note auctions36 auctions from 28 November 2017 to 28 May 2020; the latest at 0.553%.0.0%1.0%2.0%3.0%4.0%201920200.553%

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
0.5532.55
0.5252.56
0.6802.76
1.2472.49
1.5702.37
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.552.452 of 1210 of 12
High yield0.5531.64511 of 121 of 12
Indirect bidders' share63.660.94 of 128 of 12
Direct bidders' share12.414.58 of 124 of 12
Primary dealers' share24.022.65 of 127 of 12
High minus median, basis points5.35.25 of 126 of 12

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

Who bought the 7-year note?

Indirect bidders took 63.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 28 April 2020

Indirect bidders took 63.6% of the competitive bids acceptedIndirect bidders 63.6%, Direct bidders 12.4%, Primary dealers 24.0%Indirect bidders63.6%66.4%Direct bidders12.4%12.3%Primary dealers24.0%21.3%Indirect bidders took 63.6% of the competitive bids acceptedIndirect bidders 63.6%, Direct bidders 12.4%, Primary dealers 24.0%Indirect bidders63.6%66.4%Direct bidders12.4%12.3%Primary dealers24.0%21.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders63.666.4
Direct bidders12.412.3
Primary dealers24.021.3

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$38,000,000,000
Bids received$100,799,834,500
Sold$41,989,354,500
Competitive bids accepted$37,990,920,000
Non-competitive bids accepted$9,083,300
Federal Reserve (SOMA) add-on$3,989,351,200
Foreign and international (FIMA) non-competitive$0
High yield, %0.553
Median rate, %0.500
Low rate, %0.420
Interest rate (coupon), %0.500
Bids at the high rate filled, %42.30
Bid-to-cover ratio2.55
Indirect bidders accepted$24,156,000,000
Direct bidders accepted$4,708,400,000
Primary dealers accepted$9,126,520,000
Indirect bidders' share, % (ours)63.6
Direct bidders' share, % (ours)12.4
Primary dealers' share, % (ours)24.0
High minus median, basis points (ours)5.3
Treasury par yield curve, 7-year point, same day, %0.54
High yield minus that point, basis points (ours)1.3

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 ratio2.55Last 24 auctions4 of 2419 of 242.46
Bid-to-cover ratio2.55All 144 since 26 February 200976 of 14465 of 1442.56
High yield0.553Last 24 auctions23 of 241 of 242.104
High yield0.553Since 26 February 2009143 of 1441 of 1442.075
High yield0.553All 193 since 6 February 1980192 of 1931 of 1932.280
Indirect bidders' share63.6Last 24 auctions7 of 2417 of 2459.4
Indirect bidders' share63.6All 144 since 26 February 200929 of 144115 of 14454.0
Direct bidders' share12.4Last 24 auctions19 of 245 of 2415.8
Direct bidders' share12.4All 144 since 26 February 200981 of 14463 of 14413.1
Primary dealers' share24.0Last 24 auctions10 of 2414 of 2422.5
Primary dealers' share24.0All 144 since 26 February 2009109 of 14435 of 14433.7
High minus median, basis points5.3Last 24 auctions5 of 2418 of 244.6
High minus median, basis points5.3Since 26 February 200940 of 144100 of 1444.4
High minus median, basis points5.3All 193 since 6 February 198044 of 193145 of 1934.0

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 May 2020. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20200528_3.pdf. Compiled by 500metrics, "7-year note auction of 28 May 2020 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2020-05-28.

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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