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

The 7-year note sold $73.133 billion at a high yield of 1.300% on , with a bid-to-cover ratio of 2.23.

Coupon
1.250%
Announced
Issued
Matures

High yield

1.300%

Median yield 1.225%

Bid-to-cover

2.23

▲ +0.19 since 25 Feb

Sold

$73.13 billion

$62 billion offered

Indirect bidders

57.3%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 28 January 2020

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 28 January 202036 auctions from 29 August 2018 to 25 March 2021; the latest at 1.300%.0.0%1.0%2.0%3.0%4.0%2018201920202021This auction, 1.300%The high yield was the highest for a 7-year note since 28 January 202036 auctions from 29 August 2018 to 25 March 2021; the latest at 1.300%.0.0%0.5%1.0%1.5%2.0%2.5%2019202020211.300%

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
1.3002.23
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.232.4411 of 121 of 12
High yield1.3000.5760 of 1212 of 12
Indirect bidders' share57.363.211 of 121 of 12
Direct bidders' share18.016.01 of 1211 of 12
Primary dealers' share24.721.53 of 129 of 12
High minus median, basis points7.55.31 of 1211 of 12

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

Who bought the 7-year note?

Indirect bidders took 57.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 February 2021

Indirect bidders took 57.3% of the competitive bids acceptedIndirect bidders 57.3%, Direct bidders 18.0%, Primary dealers 24.7%Indirect bidders57.3%38.1%Direct bidders18.0%22.1%Primary dealers24.7%39.8%Indirect bidders took 57.3% of the competitive bids acceptedIndirect bidders 57.3%, Direct bidders 18.0%, Primary dealers 24.7%Indirect bidders57.3%38.1%Direct bidders18.0%22.1%Primary dealers24.7%39.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders57.338.1
Direct bidders18.022.1
Primary dealers24.739.8

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$149,606,196,200
Sold$73,133,436,200
Competitive bids accepted$61,938,581,000
Non-competitive bids accepted$61,445,700
Federal Reserve (SOMA) add-on$11,133,409,500
Foreign and international (FIMA) non-competitive$0
High yield, %1.300
Median rate, %1.225
Low rate, %0.080
Interest rate (coupon), %1.250
Bids at the high rate filled, %40.90
Bid-to-cover ratio2.23
Indirect bidders accepted$35,471,441,000
Direct bidders accepted$11,150,900,000
Primary dealers accepted$15,316,240,000
Indirect bidders' share, % (ours)57.3
Direct bidders' share, % (ours)18.0
Primary dealers' share, % (ours)24.7
High minus median, basis points (ours)7.5
Treasury par yield curve, 7-year point, same day, %1.29
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 ratio2.23Last 24 auctions22 of 242 of 242.44
Bid-to-cover ratio2.23All 154 since 26 February 2009151 of 1543 of 1542.55
High yield1.300Last 24 auctions11 of 2413 of 241.221
High yield1.300Since 26 February 2009129 of 15425 of 1542.050
High yield1.300All 203 since 6 February 1980178 of 20325 of 2032.250
Indirect bidders' share57.3Last 24 auctions21 of 243 of 2462.5
Indirect bidders' share57.3All 154 since 26 February 200970 of 15484 of 15455.9
Direct bidders' share18.0Last 24 auctions5 of 2419 of 2415.9
Direct bidders' share18.0All 154 since 26 February 200930 of 154124 of 15413.3
Primary dealers' share24.7Last 24 auctions6 of 2418 of 2421.5
Primary dealers' share24.7All 154 since 26 February 2009108 of 15446 of 15432.2
High minus median, basis points7.5Last 24 auctions1 of 2423 of 245.0
High minus median, basis points7.5Since 26 February 200910 of 154144 of 1544.5
High minus median, basis points7.5All 203 since 6 February 198011 of 203192 of 2034.0

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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 March 2021. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2021/R_20210325_3.pdf. Compiled by 500metrics, "7-year note auction of 25 March 2021 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2021-03-25.

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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