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7-year note auction of 27 August 2020 (new issue)

The 7-year note sold $51.083 billion at a high yield of 0.519% on , with a bid-to-cover ratio of 2.47.

Coupon
0.500%
Announced
Issued
Matures

High yield

0.519%

Median yield 0.476%

Bid-to-cover

2.47

▲ +0.02 since 28 Jul

Sold

$51.08 billion

$47 billion offered

Indirect bidders

68.3%

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 25 January 2018 to 27 August 2020; the latest at 0.519%.0.0%1.0%2.0%3.0%4.0%201820192020This auction, 0.519%High yield at the last 36 7-year note auctions36 auctions from 25 January 2018 to 27 August 2020; the latest at 0.519%.0.0%1.0%2.0%3.0%201920200.519%

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
0.5192.47
0.4462.45
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.472.486 of 125 of 12
High yield0.5191.36810 of 122 of 12
Indirect bidders' share68.363.31 of 1211 of 12
Direct bidders' share16.414.53 of 129 of 12
Primary dealers' share15.321.512 of 120 of 12
High minus median, basis points4.35.210 of 121 of 12

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

  • Primary dealers' share: Lowest for a 7-year note since 28 March 2019 (18 auctions in between).

Who bought the 7-year note?

Indirect bidders took 68.3% of the competitive bids accepted

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

Indirect bidders took 68.3% of the competitive bids acceptedIndirect bidders 68.3%, Direct bidders 16.4%, Primary dealers 15.3%Indirect bidders68.3%63.9%Direct bidders16.4%16.8%Primary dealers15.3%19.3%Indirect bidders took 68.3% of the competitive bids acceptedIndirect bidders 68.3%, Direct bidders 16.4%, Primary dealers 15.3%Indirect bidders68.3%63.9%Direct bidders16.4%16.8%Primary dealers15.3%19.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders68.363.9
Direct bidders16.416.8
Primary dealers15.319.3

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$47,000,000,000
Bids received$120,280,710,900
Sold$51,083,075,700
Competitive bids accepted$46,991,264,800
Non-competitive bids accepted$8,737,800
Federal Reserve (SOMA) add-on$4,083,073,100
Foreign and international (FIMA) non-competitive$0
High yield, %0.519
Median rate, %0.476
Low rate, %0.080
Interest rate (coupon), %0.500
Bids at the high rate filled, %68.04
Bid-to-cover ratio2.47
Indirect bidders accepted$32,093,103,200
Direct bidders accepted$7,688,031,600
Primary dealers accepted$7,210,130,000
Indirect bidders' share, % (ours)68.3
Direct bidders' share, % (ours)16.4
Primary dealers' share, % (ours)15.3
High minus median, basis points (ours)4.3
Treasury par yield curve, 7-year point, same day, %0.53
High yield minus that point, basis points (ours)-1.1

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 auctions12 of 2411 of 242.48
Bid-to-cover ratio2.47All 147 since 26 February 2009105 of 14739 of 1472.56
High yield0.519Last 24 auctions22 of 242 of 241.862
High yield0.519Since 26 February 2009145 of 1472 of 1472.065
High yield0.519All 196 since 6 February 1980194 of 1962 of 1962.270
Indirect bidders' share68.3Last 24 auctions1 of 2423 of 2459.9
Indirect bidders' share68.3All 147 since 26 February 20099 of 147138 of 14755.2
Direct bidders' share16.4Last 24 auctions10 of 2414 of 2415.8
Direct bidders' share16.4All 147 since 26 February 200943 of 147104 of 14713.1
Primary dealers' share15.3Last 24 auctions23 of 241 of 2421.5
Primary dealers' share15.3All 147 since 26 February 2009142 of 1475 of 14733.0
High minus median, basis points4.3Last 24 auctions15 of 248 of 244.6
High minus median, basis points4.3Since 26 February 200978 of 14767 of 1474.4
High minus median, basis points4.3All 196 since 6 February 198083 of 196111 of 1964.0

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 August 2020. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20200827_3.pdf. Compiled by 500metrics, "7-year note auction of 27 August 2020 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2020-08-27.

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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