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

The 7-year note sold $35 billion at a high yield of 4.027% on , with a bid-to-cover ratio of 2.43.

Coupon
4.000%
Announced
Issued
Matures

High yield

4.027%

Median yield 3.950%

Bid-to-cover

2.43

▼ −0.14 since 28 Sep

Sold

$35.00 billion

$35 billion offered

Indirect bidders

63.2%

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 26 December 2019 to 27 October 2022; the latest at 4.027%.0.0%1.0%2.0%3.0%4.0%5.0%202020212022This auction, 4.027%The high yield was the highest for a 7-year note since 13 April 199336 auctions from 26 December 2019 to 27 October 2022; the latest at 4.027%.0.0%1.0%2.0%3.0%4.0%5.0%202120224.027%

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
4.0272.43
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.432.467 of 125 of 12
High yield4.0272.6140 of 1212 of 12
Indirect bidders' share63.263.36 of 126 of 12
Direct bidders' share22.720.15 of 127 of 12
Primary dealers' share14.113.76 of 126 of 12
High minus median, basis points7.76.63 of 129 of 12

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

Who bought the 7-year note?

Indirect bidders took 63.2% of the competitive bids accepted

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

Indirect bidders took 63.2% of the competitive bids acceptedIndirect bidders 63.2%, Direct bidders 22.7%, Primary dealers 14.1%Indirect bidders63.2%62.5%Direct bidders22.7%24.7%Primary dealers14.1%12.8%Indirect bidders took 63.2% of the competitive bids acceptedIndirect bidders 63.2%, Direct bidders 22.7%, Primary dealers 14.1%Indirect bidders63.2%62.5%Direct bidders22.7%24.7%Primary dealers14.1%12.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders63.262.5
Direct bidders22.724.7
Primary dealers14.112.8

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$35,000,000,000
Bids received$85,063,878,200
Sold$35,000,027,000
Competitive bids accepted$34,956,232,800
Non-competitive bids accepted$43,794,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %4.027
Median rate, %3.950
Low rate, %3.850
Interest rate (coupon), %4.000
Bids at the high rate filled, %25.97
Bid-to-cover ratio2.43
Indirect bidders accepted$22,081,384,000
Direct bidders accepted$7,941,356,300
Primary dealers accepted$4,933,492,500
Indirect bidders' share, % (ours)63.2
Direct bidders' share, % (ours)22.7
Primary dealers' share, % (ours)14.1
High minus median, basis points (ours)7.7
Treasury par yield curve, 7-year point, same day, %4.01
High yield minus that point, basis points (ours)1.7

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 ratio2.43Last 24 auctions7 of 2417 of 242.36
Bid-to-cover ratio2.43All 174 since 26 February 2009130 of 17443 of 1742.54
High yield4.027Last 24 auctions0 of 2424 of 241.470
High yield4.027Since 26 February 20090 of 174174 of 1742.020
High yield4.027All 223 since 6 February 198049 of 223174 of 2232.230
Indirect bidders' share63.2Last 24 auctions9 of 2415 of 2461.5
Indirect bidders' share63.2All 174 since 26 February 200942 of 174132 of 17457.7
Direct bidders' share22.7Last 24 auctions5 of 2419 of 2419.7
Direct bidders' share22.7All 174 since 26 February 200915 of 174159 of 17414.2
Primary dealers' share14.1Last 24 auctions18 of 246 of 2418.2
Primary dealers' share14.1All 174 since 26 February 2009165 of 1749 of 17430.5
High minus median, basis points7.7Last 24 auctions5 of 2419 of 246.4
High minus median, basis points7.7Since 26 February 200914 of 174160 of 1744.6
High minus median, basis points7.7All 223 since 6 February 198015 of 223208 of 2234.2

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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 27 October 2022. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20221027_3.pdf. Compiled by 500metrics, "7-year note auction of 27 October 2022 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2022-10-27.

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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