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7-year note auction of 22 November 2022 (new issue)

The 7-year note sold $38.805 billion at a high yield of 3.890% on , with a bid-to-cover ratio of 2.33.

Coupon
3.875%
Announced
Issued
Matures

High yield

3.890%

Median yield 3.819%

Bid-to-cover

2.33

▼ −0.10 since 27 Oct

Sold

$38.81 billion

$35 billion offered

Indirect bidders

61.9%

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 28 January 2020 to 22 November 2022; the latest at 3.890%.0.0%1.0%2.0%3.0%4.0%5.0%202020212022This auction, 3.890%High yield at the last 36 7-year note auctions36 auctions from 28 January 2020 to 22 November 2022; the latest at 3.890%.0.0%1.0%2.0%3.0%4.0%5.0%202120223.890%

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
3.8902.33
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.332.4611 of 121 of 12
High yield3.8902.7542 of 1210 of 12
Indirect bidders' share61.963.59 of 123 of 12
Direct bidders' share16.820.19 of 123 of 12
Primary dealers' share21.413.50 of 1212 of 12
High minus median, basis points7.16.84 of 128 of 12

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

  • Primary dealers' share: Highest for a 7-year note since 29 July 2021 (16 auctions in between).

Who bought the 7-year note?

Indirect bidders took 61.9% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 October 2022

Indirect bidders took 61.9% of the competitive bids acceptedIndirect bidders 61.9%, Direct bidders 16.8%, Primary dealers 21.4%Indirect bidders61.9%63.2%Direct bidders16.8%22.7%Primary dealers21.4%14.1%Indirect bidders took 61.9% of the competitive bids acceptedIndirect bidders 61.9%, Direct bidders 16.8%, Primary dealers 21.4%Indirect bidders61.9%63.2%Direct bidders16.8%22.7%Primary dealers21.4%14.1%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders61.963.2
Direct bidders16.822.7
Primary dealers21.414.1

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$85,357,214,100
Sold$38,805,040,100
Competitive bids accepted$34,961,096,000
Non-competitive bids accepted$38,917,200
Federal Reserve (SOMA) add-on$3,805,026,900
Foreign and international (FIMA) non-competitive$0
High yield, %3.890
Median rate, %3.819
Low rate, %3.750
Interest rate (coupon), %3.875
Bids at the high rate filled, %64.18
Bid-to-cover ratio2.33
Indirect bidders accepted$21,638,370,000
Direct bidders accepted$5,856,990,000
Primary dealers accepted$7,465,736,000
Indirect bidders' share, % (ours)61.9
Direct bidders' share, % (ours)16.8
Primary dealers' share, % (ours)21.4
High minus median, basis points (ours)7.1
Treasury par yield curve, 7-year point, same day, %3.86
High yield minus that point, basis points (ours)3.0

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 ratio2.33Last 24 auctions15 of 249 of 242.36
Bid-to-cover ratio2.33All 175 since 26 February 2009157 of 17518 of 1752.54
High yield3.890Last 24 auctions2 of 2422 of 241.506
High yield3.890Since 26 February 20092 of 175173 of 1752.021
High yield3.890All 224 since 6 February 198051 of 224173 of 2242.232
Indirect bidders' share61.9Last 24 auctions11 of 2413 of 2461.5
Indirect bidders' share61.9All 175 since 26 February 200955 of 175120 of 17557.8
Direct bidders' share16.8Last 24 auctions20 of 244 of 2420.1
Direct bidders' share16.8All 175 since 26 February 200960 of 175115 of 17514.3
Primary dealers' share21.4Last 24 auctions5 of 2419 of 2417.6
Primary dealers' share21.4All 175 since 26 February 2009128 of 17547 of 17530.5
High minus median, basis points7.1Last 24 auctions7 of 2417 of 246.5
High minus median, basis points7.1Since 26 February 200917 of 175157 of 1754.6
High minus median, basis points7.1All 224 since 6 February 198018 of 224205 of 2244.2

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 22 November 2022. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20221122_2.pdf. Compiled by 500metrics, "7-year note auction of 22 November 2022 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2022-11-22.

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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