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

The 7-year note sold $36 billion at a high yield of 3.898% on , with a bid-to-cover ratio of 2.57.

Coupon
3.875%
Announced
Issued
Matures

High yield

3.898%

Median yield 3.850%

Bid-to-cover

2.57

▼ −0.08 since 25 Aug

Sold

$36.00 billion

$36 billion offered

Indirect bidders

62.5%

Of competitive bids accepted

The high yield was the highest for a 7-year note since 13 April 1993

High yield at each 7-year note auction, %

The high yield was the highest for a 7-year note since 13 April 199336 auctions from 27 November 2019 to 28 September 2022; the latest at 3.898%.0.0%1.0%2.0%3.0%4.0%202020212022This auction, 3.898%The high yield was the highest for a 7-year note since 13 April 199336 auctions from 27 November 2019 to 28 September 2022; the latest at 3.898%.0.0%1.0%2.0%3.0%4.0%202120223.898%

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
3.8982.57
3.1302.65
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.572.433 of 129 of 12
High yield3.8982.2020 of 1212 of 12
Indirect bidders' share62.563.98 of 124 of 12
Direct bidders' share24.719.71 of 1211 of 12
Primary dealers' share12.814.67 of 125 of 12
High minus median, basis points4.86.810 of 121 of 12

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

Who bought the 7-year note?

Indirect bidders took 62.5% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 August 2022

Indirect bidders took 62.5% of the competitive bids acceptedIndirect bidders 62.5%, Direct bidders 24.7%, Primary dealers 12.8%Indirect bidders62.5%75.7%Direct bidders24.7%15.7%Primary dealers12.8%8.6%Indirect bidders took 62.5% of the competitive bids acceptedIndirect bidders 62.5%, Direct bidders 24.7%, Primary dealers 12.8%Indirect bidders62.5%75.7%Direct bidders24.7%15.7%Primary dealers12.8%8.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders62.575.7
Direct bidders24.715.7
Primary dealers12.88.6

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$36,000,000,000
Bids received$92,485,179,600
Sold$36,000,003,600
Competitive bids accepted$35,947,089,000
Non-competitive bids accepted$52,914,600
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %3.898
Median rate, %3.850
Low rate, %3.797
Interest rate (coupon), %3.875
Bids at the high rate filled, %55.60
Bid-to-cover ratio2.57
Indirect bidders accepted$22,463,689,000
Direct bidders accepted$8,865,400,000
Primary dealers accepted$4,618,000,000
Indirect bidders' share, % (ours)62.5
Direct bidders' share, % (ours)24.7
Primary dealers' share, % (ours)12.8
High minus median, basis points (ours)4.8
Treasury par yield curve, 7-year point, same day, %3.83
High yield minus that point, basis points (ours)6.8

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 ratio2.57Last 24 auctions3 of 2421 of 242.36
Bid-to-cover ratio2.57All 173 since 26 February 200971 of 173100 of 1732.54
High yield3.898Last 24 auctions0 of 2424 of 241.396
High yield3.898Since 26 February 20090 of 173173 of 1732.018
High yield3.898All 222 since 6 February 198049 of 222173 of 2222.226
Indirect bidders' share62.5Last 24 auctions10 of 2414 of 2461.0
Indirect bidders' share62.5All 173 since 26 February 200947 of 173126 of 17357.5
Direct bidders' share24.7Last 24 auctions1 of 2423 of 2419.5
Direct bidders' share24.7All 173 since 26 February 20095 of 173168 of 17314.2
Primary dealers' share12.8Last 24 auctions19 of 245 of 2418.8
Primary dealers' share12.8All 173 since 26 February 2009165 of 1738 of 17330.5
High minus median, basis points4.8Last 24 auctions22 of 241 of 246.4
High minus median, basis points4.8Since 26 February 200976 of 17393 of 1734.6
High minus median, basis points4.8All 222 since 6 February 198081 of 222137 of 2224.2

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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 28 September 2022. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20220928_3.pdf. Compiled by 500metrics, "7-year note auction of 28 September 2022 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2022-09-28.

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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