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7-year note auction of 29 December 2022 (new issue)

The 7-year note sold $35 billion at a high yield of 3.921% on , with a bid-to-cover ratio of 2.45.

Coupon
3.875%
Announced
Issued
Matures

High yield

3.921%

Median yield 3.859%

Bid-to-cover

2.45

▲ +0.12 since 22 Nov

Sold

$35.00 billion

$35 billion offered

Indirect bidders

68.1%

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 27 February 2020 to 29 December 2022; the latest at 3.921%.0.0%1.0%2.0%3.0%4.0%5.0%202020212022This auction, 3.921%High yield at the last 36 7-year note auctions36 auctions from 27 February 2020 to 29 December 2022; the latest at 3.921%.1.0%2.0%3.0%4.0%5.0%202120223.921%

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
3.9212.45
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.452.466 of 126 of 12
High yield3.9212.8421 of 1211 of 12
Indirect bidders' share68.163.54 of 128 of 12
Direct bidders' share16.220.110 of 122 of 12
Primary dealers' share15.813.52 of 1210 of 12
High minus median, basis points6.26.89 of 123 of 12

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

Who bought the 7-year note?

Indirect bidders took 68.1% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 22 November 2022

Indirect bidders took 68.1% of the competitive bids acceptedIndirect bidders 68.1%, Direct bidders 16.2%, Primary dealers 15.8%Indirect bidders68.1%61.9%Direct bidders16.2%16.8%Primary dealers15.8%21.4%Indirect bidders took 68.1% of the competitive bids acceptedIndirect bidders 68.1%, Direct bidders 16.2%, Primary dealers 15.8%Indirect bidders68.1%61.9%Direct bidders16.2%16.8%Primary dealers15.8%21.4%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders68.161.9
Direct bidders16.216.8
Primary dealers15.821.4

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$85,874,350,200
Sold$35,000,010,200
Competitive bids accepted$34,946,725,000
Non-competitive bids accepted$53,285,200
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %3.921
Median rate, %3.859
Low rate, %3.800
Interest rate (coupon), %3.875
Bids at the high rate filled, %16.12
Bid-to-cover ratio2.45
Indirect bidders accepted$23,791,565,000
Direct bidders accepted$5,650,100,000
Primary dealers accepted$5,505,060,000
Indirect bidders' share, % (ours)68.1
Direct bidders' share, % (ours)16.2
Primary dealers' share, % (ours)15.8
High minus median, basis points (ours)6.2
Treasury par yield curve, 7-year point, same day, %3.91
High yield minus that point, basis points (ours)1.1

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 ratio2.45Last 24 auctions6 of 2418 of 242.36
Bid-to-cover ratio2.45All 176 since 26 February 2009121 of 17651 of 1762.54
High yield3.921Last 24 auctions1 of 2423 of 241.560
High yield3.921Since 26 February 20091 of 176175 of 1762.024
High yield3.921All 225 since 6 February 198050 of 225175 of 2252.235
Indirect bidders' share68.1Last 24 auctions4 of 2420 of 2461.9
Indirect bidders' share68.1All 176 since 26 February 200914 of 176162 of 17657.9
Direct bidders' share16.2Last 24 auctions22 of 242 of 2420.1
Direct bidders' share16.2All 176 since 26 February 200968 of 176108 of 17614.4
Primary dealers' share15.8Last 24 auctions14 of 2410 of 2417.6
Primary dealers' share15.8All 176 since 26 February 2009160 of 17616 of 17630.3
High minus median, basis points6.2Last 24 auctions14 of 249 of 246.5
High minus median, basis points6.2Since 26 February 200935 of 176140 of 1764.6
High minus median, basis points6.2All 225 since 6 February 198037 of 225187 of 2254.3

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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 29 December 2022. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20221229_3.pdf. Compiled by 500metrics, "7-year note auction of 29 December 2022 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2022-12-29.

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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