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7-year note auction of 26 October 2023 (new issue)

The 7-year note sold $38 billion at a high yield of 4.908% on , with a bid-to-cover ratio of 2.70.

Coupon
4.875%
Announced
Issued
Matures

High yield

4.908%

Median yield 4.849%

Bid-to-cover

2.70

▲ +0.23 since 28 Sep

Sold

$38.00 billion

$38 billion offered

Indirect bidders

70.6%

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 December 2020 to 26 October 2023; the latest at 4.908%.0.0%2.0%4.0%6.0%202120222023This auction, 4.908%The high yield was the highest for a 7-year note since 13 April 199336 auctions from 29 December 2020 to 26 October 2023; the latest at 4.908%.1.0%2.0%3.0%4.0%5.0%202220234.908%

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
4.9082.70
4.6732.47
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.702.480 of 1212 of 12
High yield4.9083.9060 of 1212 of 12
Indirect bidders' share70.666.84 of 128 of 12
Direct bidders' share18.417.15 of 127 of 12
Primary dealers' share11.014.28 of 124 of 12
High minus median, basis points5.97.010 of 122 of 12

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

  • Bid-to-cover ratio: Highest for a 7-year note since 26 March 2020 (43 auctions in between).

Who bought the 7-year note?

Indirect bidders took 70.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 28 September 2023

Indirect bidders took 70.6% of the competitive bids acceptedIndirect bidders 70.6%, Direct bidders 18.4%, Primary dealers 11.0%Indirect bidders70.6%65.5%Direct bidders18.4%19.9%Primary dealers11.0%14.6%Indirect bidders took 70.6% of the competitive bids acceptedIndirect bidders 70.6%, Direct bidders 18.4%, Primary dealers 11.0%Indirect bidders70.6%65.5%Direct bidders18.4%19.9%Primary dealers11.0%14.6%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders70.665.5
Direct bidders18.419.9
Primary dealers11.014.6

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$38,000,000,000
Bids received$102,749,692,300
Sold$38,000,032,300
Competitive bids accepted$37,746,850,000
Non-competitive bids accepted$253,182,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %4.908
Median rate, %4.849
Low rate, %4.780
Interest rate (coupon), %4.875
Bids at the high rate filled, %92.44
Bid-to-cover ratio2.70
Indirect bidders accepted$26,657,030,000
Direct bidders accepted$6,944,820,000
Primary dealers accepted$4,145,000,000
Indirect bidders' share, % (ours)70.6
Direct bidders' share, % (ours)18.4
Primary dealers' share, % (ours)11.0
High minus median, basis points (ours)5.9
Treasury par yield curve, 7-year point, same day, %4.86
High yield minus that point, basis points (ours)4.8

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 ratio2.70Last 24 auctions0 of 2424 of 242.48
Bid-to-cover ratio2.70All 186 since 26 February 200936 of 186148 of 1862.54
High yield4.908Last 24 auctions0 of 2424 of 243.540
High yield4.908Since 26 February 20090 of 186186 of 1862.062
High yield4.908All 235 since 6 February 198049 of 235186 of 2352.261
Indirect bidders' share70.6Last 24 auctions7 of 2417 of 2465.2
Indirect bidders' share70.6All 186 since 26 February 200913 of 186173 of 18658.4
Direct bidders' share18.4Last 24 auctions14 of 2410 of 2419.6
Direct bidders' share18.4All 186 since 26 February 200948 of 186138 of 18614.9
Primary dealers' share11.0Last 24 auctions16 of 248 of 2414.2
Primary dealers' share11.0All 186 since 26 February 2009176 of 18610 of 18628.5
High minus median, basis points5.9Last 24 auctions18 of 246 of 246.8
High minus median, basis points5.9Since 26 February 200949 of 186137 of 1864.8
High minus median, basis points5.9All 235 since 6 February 198053 of 235182 of 2354.4

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 26 October 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20231026_3.pdf. Compiled by 500metrics, "7-year note auction of 26 October 2023 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2023-10-26.

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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