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7-year note auction of 29 October 2020 (new issue)

The 7-year note sold $58.623 billion at a high yield of 0.600% on , with a bid-to-cover ratio of 2.24.

Coupon
0.500%
Announced
Issued
Matures

High yield

0.600%

Median yield 0.545%

Bid-to-cover

2.24

▼ −0.18 since 24 Sep

Sold

$58.62 billion

$53 billion offered

Indirect bidders

60.9%

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 March 2018 to 29 October 2020; the latest at 0.600%.0.0%1.0%2.0%3.0%4.0%201820192020This auction, 0.600%High yield at the last 36 7-year note auctions36 auctions from 28 March 2018 to 29 October 2020; the latest at 0.600%.0.0%0.5%1.0%1.5%2.0%2.5%201920200.600%

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
0.6002.24
0.4622.42
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.242.4712 of 120 of 12
High yield0.6000.6166 of 126 of 12
Indirect bidders' share60.963.310 of 122 of 12
Direct bidders' share14.315.17 of 125 of 12
Primary dealers' share24.920.91 of 1211 of 12
High minus median, basis points5.54.92 of 129 of 12

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

  • Bid-to-cover ratio: Lowest for a 7-year note since 29 August 2019 (13 auctions in between).

Who bought the 7-year note?

Indirect bidders took 60.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 24 September 2020

Indirect bidders took 60.9% of the competitive bids acceptedIndirect bidders 60.9%, Direct bidders 14.3%, Primary dealers 24.9%Indirect bidders60.9%62.8%Direct bidders14.3%16.6%Primary dealers24.9%20.5%Indirect bidders took 60.9% of the competitive bids acceptedIndirect bidders 60.9%, Direct bidders 14.3%, Primary dealers 24.9%Indirect bidders60.9%62.8%Direct bidders14.3%16.6%Primary dealers24.9%20.5%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders60.962.8
Direct bidders14.316.6
Primary dealers24.920.5

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$53,000,000,000
Bids received$124,141,354,800
Sold$58,622,976,800
Competitive bids accepted$52,997,237,000
Non-competitive bids accepted$2,776,100
Federal Reserve (SOMA) add-on$5,622,963,700
Foreign and international (FIMA) non-competitive$0
High yield, %0.600
Median rate, %0.545
Low rate, %0.080
Interest rate (coupon), %0.500
Bids at the high rate filled, %34.59
Bid-to-cover ratio2.24
Indirect bidders accepted$32,259,133,000
Direct bidders accepted$7,557,859,000
Primary dealers accepted$13,180,245,000
Indirect bidders' share, % (ours)60.9
Direct bidders' share, % (ours)14.3
Primary dealers' share, % (ours)24.9
High minus median, basis points (ours)5.5
Treasury par yield curve, 7-year point, same day, %0.61
High yield minus that point, basis points (ours)-1.0

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 ratio2.24Last 24 auctions23 of 241 of 242.47
Bid-to-cover ratio2.24All 149 since 26 February 2009147 of 1492 of 1492.56
High yield0.600Last 24 auctions18 of 246 of 241.688
High yield0.600Since 26 February 2009143 of 1496 of 1492.060
High yield0.600All 198 since 6 February 1980192 of 1986 of 1982.260
Indirect bidders' share60.9Last 24 auctions12 of 2412 of 2461.4
Indirect bidders' share60.9All 149 since 26 February 200947 of 149102 of 14955.5
Direct bidders' share14.3Last 24 auctions17 of 247 of 2415.9
Direct bidders' share14.3All 149 since 26 February 200962 of 14987 of 14913.2
Primary dealers' share24.9Last 24 auctions5 of 2419 of 2421.5
Primary dealers' share24.9All 149 since 26 February 2009104 of 14945 of 14932.3
High minus median, basis points5.5Last 24 auctions3 of 2420 of 244.6
High minus median, basis points5.5Since 26 February 200934 of 149111 of 1494.4
High minus median, basis points5.5All 198 since 6 February 198038 of 198156 of 1984.0

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 29 October 2020. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20201029_3.pdf. Compiled by 500metrics, "7-year note auction of 29 October 2020 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2020-10-29.

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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