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7-year note auction of 27 January 2022 (new issue)

The 7-year note sold $60.922 billion at a high yield of 1.769% on , with a bid-to-cover ratio of 2.36.

Coupon
1.750%
Announced
Issued
Matures

High yield

1.769%

Median yield 1.700%

Bid-to-cover

2.36

▼ −0.14 since 25 Jan

Sold

$60.92 billion

$53 billion offered

Indirect bidders

62.6%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 26 December 2019

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 26 December 201936 auctions from 25 April 2019 to 27 January 2022; the latest at 1.769%.0.0%0.5%1.0%1.5%2.0%2.5%2019202020212022This auction, 1.769%The high yield was the highest for a 7-year note since 26 December 201936 auctions from 25 April 2019 to 27 January 2022; the latest at 1.769%.0.0%0.5%1.0%1.5%2.0%2020202120221.769%

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
1.7692.36
1.5332.50
1.4802.21
1.5882.42
1.4612.25
1.3322.24
1.1552.34
1.0502.23
1.2642.36
1.2852.41
1.3062.31
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.362.283 of 128 of 12
High yield1.7691.3030 of 1212 of 12
Indirect bidders' share62.659.42 of 1210 of 12
Direct bidders' share22.920.11 of 1211 of 12
Primary dealers' share14.519.912 of 120 of 12
High minus median, basis points6.96.04 of 128 of 12

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

  • Primary dealers' share: Lowest for a 7-year note since 25 January 2018 (52 auctions in between).

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, 25 January 2022

Indirect bidders took 62.6% of the competitive bids acceptedIndirect bidders 62.6%, Direct bidders 22.9%, Primary dealers 14.5%Indirect bidders62.6%68.7%Direct bidders22.9%16.5%Primary dealers14.5%14.8%Indirect bidders took 62.6% of the competitive bids acceptedIndirect bidders 62.6%, Direct bidders 22.9%, Primary dealers 14.5%Indirect bidders62.6%68.7%Direct bidders22.9%16.5%Primary dealers14.5%14.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders62.668.7
Direct bidders22.916.5
Primary dealers14.514.8

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$53,000,000,000
Bids received$133,051,635,200
Sold$60,921,526,900
Competitive bids accepted$52,976,471,700
Non-competitive bids accepted$23,531,700
Federal Reserve (SOMA) add-on$7,921,523,500
Foreign and international (FIMA) non-competitive$0
High yield, %1.769
Median rate, %1.700
Low rate, %1.650
Interest rate (coupon), %1.750
Bids at the high rate filled, %91.49
Bid-to-cover ratio2.36
Indirect bidders accepted$33,188,352,500
Direct bidders accepted$12,110,756,700
Primary dealers accepted$7,677,362,500
Indirect bidders' share, % (ours)62.6
Direct bidders' share, % (ours)22.9
Primary dealers' share, % (ours)14.5
High minus median, basis points (ours)6.9
Treasury par yield curve, 7-year point, same day, %1.78
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 ratio2.36Last 24 auctions12 of 2411 of 242.36
Bid-to-cover ratio2.36All 165 since 26 February 2009139 of 16522 of 1652.54
High yield1.769Last 24 auctions0 of 2424 of 241.102
High yield1.769Since 26 February 2009101 of 16564 of 1652.010
High yield1.769All 214 since 6 February 1980150 of 21464 of 2142.215
Indirect bidders' share62.6Last 24 auctions10 of 2414 of 2461.7
Indirect bidders' share62.6All 165 since 26 February 200939 of 165126 of 16556.6
Direct bidders' share22.9Last 24 auctions1 of 2423 of 2416.9
Direct bidders' share22.9All 165 since 26 February 200911 of 165154 of 16514.0
Primary dealers' share14.5Last 24 auctions24 of 240 of 2420.9
Primary dealers' share14.5All 165 since 26 February 2009162 of 1653 of 16531.0
High minus median, basis points6.9Last 24 auctions4 of 2420 of 245.5
High minus median, basis points6.9Since 26 February 200918 of 165145 of 1654.6
High minus median, basis points6.9All 214 since 6 February 198020 of 214192 of 2144.2

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 January 2022. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220127_3.pdf. Compiled by 500metrics, "7-year note auction of 27 January 2022 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2022-01-27.

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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