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7-year note auction of 29 August 2023 (new issue)

The 7-year note sold $39.74 billion at a high yield of 4.212% on , with a bid-to-cover ratio of 2.66.

Coupon
4.125%
Announced
Issued
Matures

High yield

4.212%

Median yield 4.155%

Bid-to-cover

2.66

▲ +0.18 since 27 Jul

Sold

$39.74 billion

$36 billion offered

Indirect bidders

75.3%

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 29 October 2020 to 29 August 2023; the latest at 4.212%.0.0%1.0%2.0%3.0%4.0%5.0%2020202120222023This auction, 4.212%The high yield was the highest for a 7-year note since 13 April 199336 auctions from 29 October 2020 to 29 August 2023; the latest at 4.212%.1.0%2.0%3.0%4.0%5.0%202220234.212%

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
4.2122.66
4.0872.48
3.8392.65
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.662.481 of 1211 of 12
High yield4.2123.8640 of 1212 of 12
Indirect bidders' share75.366.83 of 129 of 12
Direct bidders' share15.017.112 of 120 of 12
Primary dealers' share9.813.99 of 123 of 12
High minus median, basis points5.76.810 of 122 of 12

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

  • Direct bidders' share: Lowest for a 7-year note since 29 October 2020 (34 auctions in between).

Who bought the 7-year note?

Indirect bidders took 75.3% of the competitive bids accepted

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

Indirect bidders took 75.3% of the competitive bids acceptedIndirect bidders 75.3%, Direct bidders 15.0%, Primary dealers 9.8%Indirect bidders75.3%69.8%Direct bidders15.0%15.9%Primary dealers9.8%14.3%Indirect bidders took 75.3% of the competitive bids acceptedIndirect bidders 75.3%, Direct bidders 15.0%, Primary dealers 9.8%Indirect bidders75.3%69.8%Direct bidders15.0%15.9%Primary dealers9.8%14.3%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders75.369.8
Direct bidders15.015.9
Primary dealers9.814.3

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$99,593,723,600
Sold$39,740,231,100
Competitive bids accepted$35,931,827,500
Non-competitive bids accepted$68,179,000
Federal Reserve (SOMA) add-on$3,740,224,600
Foreign and international (FIMA) non-competitive$0
High yield, %4.212
Median rate, %4.155
Low rate, %4.100
Interest rate (coupon), %4.125
Bids at the high rate filled, %95.53
Bid-to-cover ratio2.66
Indirect bidders accepted$27,039,427,500
Direct bidders accepted$5,380,400,000
Primary dealers accepted$3,512,000,000
Indirect bidders' share, % (ours)75.3
Direct bidders' share, % (ours)15.0
Primary dealers' share, % (ours)9.8
High minus median, basis points (ours)5.7
Treasury par yield curve, 7-year point, same day, %4.21
High yield minus that point, basis points (ours)0.2

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 ratio2.66Last 24 auctions2 of 2422 of 242.44
Bid-to-cover ratio2.66All 184 since 26 February 200943 of 184140 of 1842.54
High yield4.212Last 24 auctions0 of 2424 of 243.205
High yield4.212Since 26 February 20090 of 184184 of 1842.059
High yield4.212All 233 since 6 February 198049 of 233184 of 2332.258
Indirect bidders' share75.3Last 24 auctions4 of 2420 of 2464.0
Indirect bidders' share75.3All 184 since 26 February 20096 of 184178 of 18458.4
Direct bidders' share15.0Last 24 auctions24 of 240 of 2419.7
Direct bidders' share15.0All 184 since 26 February 200991 of 18493 of 18414.9
Primary dealers' share9.8Last 24 auctions20 of 244 of 2414.4
Primary dealers' share9.8All 184 since 26 February 2009179 of 1845 of 18428.8
High minus median, basis points5.7Last 24 auctions20 of 244 of 246.8
High minus median, basis points5.7Since 26 February 200953 of 184128 of 1844.7
High minus median, basis points5.7All 233 since 6 February 198057 of 233173 of 2334.4

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 29 August 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230829_2.pdf. Compiled by 500metrics, "7-year note auction of 29 August 2023 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2023-08-29.

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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