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7-year note auction of 25 June 2020 (new issue)

The 7-year note sold $46.608 billion at a high yield of 0.511% on , with a bid-to-cover ratio of 2.49.

Coupon
0.500%
Announced
Issued
Matures

High yield

0.511%

Median yield 0.465%

Bid-to-cover

2.49

▼ −0.06 since 28 May

Sold

$46.61 billion

$41 billion offered

Indirect bidders

62.6%

Of competitive bids accepted

The high yield was the lowest for a 7-year note of all 194 earlier auctions we hold

High yield at each 7-year note auction, %

The high yield was the lowest for a 7-year note of all 194 earlier auctions we hold36 auctions from 27 December 2017 to 25 June 2020; the latest at 0.511%.0.0%1.0%2.0%3.0%4.0%201820192020This auction, 0.511%The high yield was the lowest for a 7-year note of all 194 earlier auctions we hold36 auctions from 27 December 2017 to 25 June 2020; the latest at 0.511%.0.0%1.0%2.0%3.0%201920200.511%

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
0.5112.49
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.492.463 of 127 of 12
High yield0.5111.60212 of 120 of 12
Indirect bidders' share62.662.76 of 126 of 12
Direct bidders' share15.714.55 of 127 of 12
Primary dealers' share21.722.66 of 126 of 12
High minus median, basis points4.65.28 of 124 of 12

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

Who bought the 7-year note?

Indirect bidders took 62.6% of the competitive bids accepted

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

Indirect bidders took 62.6% of the competitive bids acceptedIndirect bidders 62.6%, Direct bidders 15.7%, Primary dealers 21.7%Indirect bidders62.6%63.6%Direct bidders15.7%12.4%Primary dealers21.7%24.0%Indirect bidders took 62.6% of the competitive bids acceptedIndirect bidders 62.6%, Direct bidders 15.7%, Primary dealers 21.7%Indirect bidders62.6%63.6%Direct bidders15.7%12.4%Primary dealers21.7%24.0%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders62.663.6
Direct bidders15.712.4
Primary dealers21.724.0

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$41,000,000,000
Bids received$107,642,797,000
Sold$46,607,737,000
Competitive bids accepted$40,997,855,000
Non-competitive bids accepted$2,217,700
Federal Reserve (SOMA) add-on$5,607,664,300
Foreign and international (FIMA) non-competitive$0
High yield, %0.511
Median rate, %0.465
Low rate, %0.080
Interest rate (coupon), %0.500
Bids at the high rate filled, %60.32
Bid-to-cover ratio2.49
Indirect bidders accepted$25,669,395,000
Direct bidders accepted$6,437,100,000
Primary dealers accepted$8,891,360,000
Indirect bidders' share, % (ours)62.6
Direct bidders' share, % (ours)15.7
Primary dealers' share, % (ours)21.7
High minus median, basis points (ours)4.6
Treasury par yield curve, 7-year point, same day, %0.53
High yield minus that point, basis points (ours)-1.9

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 ratio2.49Last 24 auctions9 of 2412 of 242.48
Bid-to-cover ratio2.49All 145 since 26 February 200995 of 14542 of 1452.56
High yield0.511Last 24 auctions24 of 240 of 242.016
High yield0.511Since 26 February 2009145 of 1450 of 1452.066
High yield0.511All 194 since 6 February 1980194 of 1940 of 1942.280
Indirect bidders' share62.6Last 24 auctions9 of 2415 of 2459.4
Indirect bidders' share62.6All 145 since 26 February 200932 of 145113 of 14554.1
Direct bidders' share15.7Last 24 auctions13 of 2411 of 2415.8
Direct bidders' share15.7All 145 since 26 February 200947 of 14598 of 14513.1
Primary dealers' share21.7Last 24 auctions12 of 2412 of 2422.5
Primary dealers' share21.7All 145 since 26 February 2009117 of 14528 of 14533.7
High minus median, basis points4.6Last 24 auctions11 of 2412 of 244.6
High minus median, basis points4.6Since 26 February 200960 of 14580 of 1454.4
High minus median, basis points4.6All 194 since 6 February 198065 of 194124 of 1944.0

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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 25 June 2020. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20200625_3.pdf. Compiled by 500metrics, "7-year note auction of 25 June 2020 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2020-06-25.

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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