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7-year note auction of 26 May 2022 (new issue)

The 7-year note sold $48.314 billion at a high yield of 2.777% on , with a bid-to-cover ratio of 2.69.

Coupon
2.750%
Announced
Issued
Matures

High yield

2.777%

Median yield 2.712%

Bid-to-cover

2.69

▲ +0.28 since 28 Apr

Sold

$48.31 billion

$42 billion offered

Indirect bidders

77.9%

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 25 July 2019 to 26 May 2022; the latest at 2.777%.0.0%1.0%2.0%3.0%2019202020212022This auction, 2.777%High yield at the last 36 7-year note auctions36 auctions from 25 July 2019 to 26 May 2022; the latest at 2.777%.0.0%1.0%2.0%3.0%2020202120222.777%

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
2.7772.69
2.9082.41
2.4992.44
1.9052.36
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.692.360 of 1212 of 12
High yield2.7771.5061 of 1211 of 12
Indirect bidders' share77.961.00 of 1212 of 12
Direct bidders' share15.820.412 of 120 of 12
Primary dealers' share6.417.012 of 120 of 12
High minus median, basis points6.56.55 of 125 of 12

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

  • Bid-to-cover ratio: Highest for a 7-year note since 26 March 2020 (26 auctions in between).
  • Indirect bidders' share: Highest for a 7-year note since 25 January 2018 (56 auctions in between).
  • Direct bidders' share: Lowest for a 7-year note since 24 November 2020 (18 auctions in between).
  • Primary dealers' share: Lowest of all 169 earlier 7-year note auctions we hold.

Who bought the 7-year note?

Indirect bidders took 77.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 28 April 2022

Indirect bidders took 77.9% of the competitive bids acceptedIndirect bidders 77.9%, Direct bidders 15.8%, Primary dealers 6.4%Indirect bidders77.9%65.0%Direct bidders15.8%19.8%Primary dealers6.4%15.2%Indirect bidders took 77.9% of the competitive bids acceptedIndirect bidders 77.9%, Direct bidders 15.8%, Primary dealers 6.4%Indirect bidders77.9%65.0%Direct bidders15.8%19.8%Primary dealers6.4%15.2%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders77.965.0
Direct bidders15.819.8
Primary dealers6.415.2

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$42,000,000,000
Bids received$119,285,975,600
Sold$48,314,150,600
Competitive bids accepted$41,982,995,000
Non-competitive bids accepted$17,009,000
Federal Reserve (SOMA) add-on$6,314,146,600
Foreign and international (FIMA) non-competitive$0
High yield, %2.777
Median rate, %2.712
Low rate, %2.650
Interest rate (coupon), %2.750
Bids at the high rate filled, %0.47
Bid-to-cover ratio2.69
Indirect bidders accepted$32,688,895,000
Direct bidders accepted$6,617,100,000
Primary dealers accepted$2,677,000,000
Indirect bidders' share, % (ours)77.9
Direct bidders' share, % (ours)15.8
Primary dealers' share, % (ours)6.4
High minus median, basis points (ours)6.5
Treasury par yield curve, 7-year point, same day, %2.75
High yield minus that point, basis points (ours)2.7

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 ratio2.69Last 24 auctions0 of 2424 of 242.36
Bid-to-cover ratio2.69All 169 since 26 February 200938 of 169131 of 1692.54
High yield2.777Last 24 auctions1 of 2423 of 241.274
High yield2.777Since 26 February 200926 of 169143 of 1692.010
High yield2.777All 218 since 6 February 198075 of 218143 of 2182.215
Indirect bidders' share77.9Last 24 auctions0 of 2424 of 2461.0
Indirect bidders' share77.9All 169 since 26 February 20092 of 169167 of 16957.1
Direct bidders' share15.8Last 24 auctions21 of 243 of 2419.5
Direct bidders' share15.8All 169 since 26 February 200967 of 169102 of 16914.2
Primary dealers' share6.4Last 24 auctions24 of 240 of 2419.5
Primary dealers' share6.4All 169 since 26 February 2009169 of 1690 of 16930.7
High minus median, basis points6.5Last 24 auctions7 of 2415 of 245.6
High minus median, basis points6.5Since 26 February 200925 of 169141 of 1694.6
High minus median, basis points6.5All 218 since 6 February 198027 of 218188 of 2184.2

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 26 May 2022. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220526_3.pdf. Compiled by 500metrics, "7-year note auction of 26 May 2022 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2022-05-26.

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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