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7-year note auction of 25 May 2023 (new issue)

The 7-year note sold $41.573 billion at a high yield of 3.827% on , with a bid-to-cover ratio of 2.61.

Coupon
3.750%
Announced
Issued
Matures

High yield

3.827%

Median yield 3.769%

Bid-to-cover

2.61

▲ +0.20 since 27 Apr

Sold

$41.57 billion

$35 billion offered

Indirect bidders

72.3%

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 July 2020 to 25 May 2023; the latest at 3.827%.0.0%1.0%2.0%3.0%4.0%5.0%2020202120222023This auction, 3.827%High yield at the last 36 7-year note auctions36 auctions from 28 July 2020 to 25 May 2023; the latest at 3.827%.1.0%2.0%3.0%4.0%5.0%2021202220233.827%

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
3.8272.61
3.5632.41
3.6262.39
4.0622.49
3.5172.69
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.612.483 of 129 of 12
High yield3.8273.5945 of 127 of 12
Indirect bidders' share72.364.83 of 129 of 12
Direct bidders' share17.319.47 of 125 of 12
Primary dealers' share10.413.99 of 123 of 12
High minus median, basis points5.87.210 of 122 of 12

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

Who bought the 7-year note?

Indirect bidders took 72.3% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 27 April 2023

Indirect bidders took 72.3% of the competitive bids acceptedIndirect bidders 72.3%, Direct bidders 17.3%, Primary dealers 10.4%Indirect bidders72.3%64.1%Direct bidders17.3%21.1%Primary dealers10.4%14.8%Indirect bidders took 72.3% of the competitive bids acceptedIndirect bidders 72.3%, Direct bidders 17.3%, Primary dealers 10.4%Indirect bidders72.3%64.1%Direct bidders17.3%21.1%Primary dealers10.4%14.8%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders72.364.1
Direct bidders17.321.1
Primary dealers10.414.8

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$97,892,008,900
Sold$41,573,013,500
Competitive bids accepted$34,967,519,600
Non-competitive bids accepted$32,589,600
Federal Reserve (SOMA) add-on$6,572,904,300
Foreign and international (FIMA) non-competitive$0
High yield, %3.827
Median rate, %3.769
Low rate, %3.680
Interest rate (coupon), %3.750
Bids at the high rate filled, %41.99
Bid-to-cover ratio2.61
Indirect bidders accepted$25,281,029,600
Direct bidders accepted$6,044,500,000
Primary dealers accepted$3,641,990,000
Indirect bidders' share, % (ours)72.3
Direct bidders' share, % (ours)17.3
Primary dealers' share, % (ours)10.4
High minus median, basis points (ours)5.8
Treasury par yield curve, 7-year point, same day, %3.86
High yield minus that point, basis points (ours)-3.3

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 ratio2.61Last 24 auctions3 of 2421 of 242.42
Bid-to-cover ratio2.61All 181 since 26 February 200960 of 181118 of 1812.54
High yield3.827Last 24 auctions5 of 2419 of 242.754
High yield3.827Since 26 February 20095 of 181176 of 1812.056
High yield3.827All 230 since 6 February 198054 of 230176 of 2302.252
Indirect bidders' share72.3Last 24 auctions3 of 2421 of 2463.2
Indirect bidders' share72.3All 181 since 26 February 20097 of 181174 of 18158.3
Direct bidders' share17.3Last 24 auctions18 of 246 of 2420.1
Direct bidders' share17.3All 181 since 26 February 200954 of 181127 of 18114.6
Primary dealers' share10.4Last 24 auctions21 of 243 of 2415.0
Primary dealers' share10.4All 181 since 26 February 2009176 of 1815 of 18129.7
High minus median, basis points5.8Last 24 auctions18 of 246 of 246.6
High minus median, basis points5.8Since 26 February 200946 of 181131 of 1814.7
High minus median, basis points5.8All 230 since 6 February 198050 of 230176 of 2304.4

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 25 May 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230525_3.pdf. Compiled by 500metrics, "7-year note auction of 25 May 2023 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2023-05-25.

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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