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7-year note auction of 28 July 2022 (new issue)

The 7-year note sold $41.297 billion at a high yield of 2.730% on , with a bid-to-cover ratio of 2.60.

Coupon
2.625%
Announced
Issued
Matures

High yield

2.730%

Median yield 2.650%

Bid-to-cover

2.60

▲ +0.12 since 28 Jun

Sold

$41.30 billion

$38 billion offered

Indirect bidders

70.9%

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 26 September 2019 to 28 July 2022; the latest at 2.730%.0.0%1.0%2.0%3.0%4.0%2019202020212022This auction, 2.730%High yield at the last 36 7-year note auctions36 auctions from 26 September 2019 to 28 July 2022; the latest at 2.730%.0.0%1.0%2.0%3.0%4.0%202120222.730%

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
2.7302.60
3.2802.48
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.602.381 of 1211 of 12
High yield2.7301.6783 of 129 of 12
Indirect bidders' share70.962.31 of 1211 of 12
Direct bidders' share18.420.110 of 122 of 12
Primary dealers' share10.615.910 of 122 of 12
High minus median, basis points8.06.63 of 129 of 12

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

Who bought the 7-year note?

Indirect bidders took 70.9% of the competitive bids accepted

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

Indirect bidders took 70.9% of the competitive bids acceptedIndirect bidders 70.9%, Direct bidders 18.4%, Primary dealers 10.6%Indirect bidders70.9%61.9%Direct bidders18.4%20.4%Primary dealers10.6%17.7%Indirect bidders took 70.9% of the competitive bids acceptedIndirect bidders 70.9%, Direct bidders 18.4%, Primary dealers 10.6%Indirect bidders70.9%61.9%Direct bidders18.4%20.4%Primary dealers10.6%17.7%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders70.961.9
Direct bidders18.420.4
Primary dealers10.617.7

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$38,000,000,000
Bids received$102,246,542,800
Sold$41,297,000,800
Competitive bids accepted$37,986,148,000
Non-competitive bids accepted$13,898,900
Federal Reserve (SOMA) add-on$3,296,953,900
Foreign and international (FIMA) non-competitive$0
High yield, %2.730
Median rate, %2.650
Low rate, %2.592
Interest rate (coupon), %2.625
Bids at the high rate filled, %53.12
Bid-to-cover ratio2.60
Indirect bidders accepted$26,945,388,000
Direct bidders accepted$7,003,480,000
Primary dealers accepted$4,037,280,000
Indirect bidders' share, % (ours)70.9
Direct bidders' share, % (ours)18.4
Primary dealers' share, % (ours)10.6
High minus median, basis points (ours)8.0
Treasury par yield curve, 7-year point, same day, %2.69
High yield minus that point, basis points (ours)4.0

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 ratio2.60Last 24 auctions1 of 2423 of 242.36
Bid-to-cover ratio2.60All 171 since 26 February 200961 of 171105 of 1712.54
High yield2.730Last 24 auctions3 of 2421 of 241.303
High yield2.730Since 26 February 200930 of 171141 of 1712.013
High yield2.730All 220 since 6 February 198079 of 220141 of 2202.218
Indirect bidders' share70.9Last 24 auctions1 of 2423 of 2461.0
Indirect bidders' share70.9All 171 since 26 February 20096 of 171165 of 17157.3
Direct bidders' share18.4Last 24 auctions15 of 249 of 2419.5
Direct bidders' share18.4All 171 since 26 February 200941 of 171130 of 17114.2
Primary dealers' share10.6Last 24 auctions22 of 242 of 2419.2
Primary dealers' share10.6All 171 since 26 February 2009167 of 1714 of 17130.6
High minus median, basis points8.0Last 24 auctions4 of 2420 of 246.0
High minus median, basis points8.0Since 26 February 200910 of 171160 of 1714.6
High minus median, basis points8.0All 220 since 6 February 198011 of 220208 of 2204.2

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 28 July 2022. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220728_3.pdf. Compiled by 500metrics, "7-year note auction of 28 July 2022 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2022-07-28.

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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