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7-year note auction of 25 February 2021 (new issue)

The 7-year note sold $75.431 billion at a high yield of 1.195% on , with a bid-to-cover ratio of 2.04.

Coupon
1.125%
Announced
Issued
Matures

High yield

1.195%

Median yield 1.099%

Bid-to-cover

2.04

▼ −0.26 since 28 Jan

Sold

$75.43 billion

$62 billion offered

Indirect bidders

38.1%

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 26 July 2018 to 25 February 2021; the latest at 1.195%.0.0%1.0%2.0%3.0%4.0%2018201920202021This auction, 1.195%High yield at the last 36 7-year note auctions36 auctions from 26 July 2018 to 25 February 2021; the latest at 1.195%.0.0%0.5%1.0%1.5%2.0%2.5%2019202020211.195%

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
1.1952.04
0.7542.30
0.6622.31
0.6532.37
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.042.4612 of 120 of 12
High yield1.1950.5761 of 1211 of 12
Indirect bidders' share38.163.312 of 120 of 12
Direct bidders' share22.115.40 of 1212 of 12
Primary dealers' share39.821.50 of 1212 of 12
High minus median, basis points9.65.30 of 1212 of 12

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

  • Bid-to-cover ratio: Lowest of all 153 earlier 7-year note auctions we hold.
  • Indirect bidders' share: Lowest for a 7-year note since 27 November 2013 (93 auctions in between).
  • Direct bidders' share: Highest for a 7-year note since 26 December 2019 (13 auctions in between).
  • Primary dealers' share: Highest for a 7-year note since 25 September 2014 (83 auctions in between).
  • High minus median, basis points: Highest for a 7-year note since 29 October 2009 (144 auctions in between).

Who bought the 7-year note?

Primary dealers took 39.8% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 28 January 2021

Primary dealers took 39.8% of the competitive bids acceptedIndirect bidders 38.1%, Direct bidders 22.1%, Primary dealers 39.8%Indirect bidders38.1%64.1%Direct bidders22.1%16.3%Primary dealers39.8%19.6%Primary dealers took 39.8% of the competitive bids acceptedIndirect bidders 38.1%, Direct bidders 22.1%, Primary dealers 39.8%Indirect bidders38.1%64.1%Direct bidders22.1%16.3%Primary dealers39.8%19.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders38.164.1
Direct bidders22.116.3
Primary dealers39.819.6

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$62,000,000,000
Bids received$140,207,159,700
Sold$75,431,149,700
Competitive bids accepted$61,989,770,000
Non-competitive bids accepted$10,255,400
Federal Reserve (SOMA) add-on$13,431,124,300
Foreign and international (FIMA) non-competitive$0
High yield, %1.195
Median rate, %1.099
Low rate, %0.950
Interest rate (coupon), %1.125
Bids at the high rate filled, %25.19
Bid-to-cover ratio2.04
Indirect bidders accepted$23,592,880,000
Direct bidders accepted$13,717,900,000
Primary dealers accepted$24,678,990,000
Indirect bidders' share, % (ours)38.1
Direct bidders' share, % (ours)22.1
Primary dealers' share, % (ours)39.8
High minus median, basis points (ours)9.6
Treasury par yield curve, 7-year point, same day, %1.23
High yield minus that point, basis points (ours)-3.5

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 ratio2.04Last 24 auctions24 of 240 of 242.44
Bid-to-cover ratio2.04All 153 since 26 February 2009153 of 1530 of 1532.55
High yield1.195Last 24 auctions13 of 2411 of 241.368
High yield1.195Since 26 February 2009136 of 15317 of 1532.056
High yield1.195All 202 since 6 February 1980185 of 20217 of 2022.252
Indirect bidders' share38.1Last 24 auctions24 of 240 of 2462.5
Indirect bidders' share38.1All 153 since 26 February 2009143 of 15310 of 15355.9
Direct bidders' share22.1Last 24 auctions2 of 2422 of 2415.8
Direct bidders' share22.1All 153 since 26 February 200911 of 153142 of 15313.3
Primary dealers' share39.8Last 24 auctions0 of 2424 of 2421.5
Primary dealers' share39.8All 153 since 26 February 200942 of 153111 of 15332.1
High minus median, basis points9.6Last 24 auctions0 of 2424 of 244.9
High minus median, basis points9.6Since 26 February 20092 of 153151 of 1534.5
High minus median, basis points9.6All 202 since 6 February 19803 of 202199 of 2024.0

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 25 February 2021. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2021/R_20210225_3.pdf. Compiled by 500metrics, "7-year note auction of 25 February 2021 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2021-02-25.

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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