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7-year note auction of 25 January 2024 (new issue)

The 7-year note sold $41 billion at a high yield of 4.109% on , with a bid-to-cover ratio of 2.57.

Coupon
4.000%
Announced
Issued
Matures

High yield

4.109%

Median yield 4.053%

Bid-to-cover

2.57

▲ +0.07 since 28 Dec

Sold

$41.00 billion

$41 billion offered

Indirect bidders

69.1%

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 25 March 2021 to 25 January 2024; the latest at 4.109%.1.0%2.0%3.0%4.0%5.0%2021202220232024This auction, 4.109%High yield at the last 36 7-year note auctions36 auctions from 25 March 2021 to 25 January 2024; the latest at 4.109%.1.0%2.0%3.0%4.0%5.0%2022202320244.109%

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
4.1092.57
3.8592.50
4.3992.44
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.572.505 of 127 of 12
High yield4.1093.9604 of 128 of 12
Indirect bidders' share69.167.66 of 126 of 12
Direct bidders' share17.017.87 of 125 of 12
Primary dealers' share13.914.06 of 126 of 12
High minus median, basis points5.67.112 of 120 of 12

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

  • High minus median, basis points: Lowest for a 7-year note since 28 September 2022 (15 auctions in between).

Who bought the 7-year note?

Indirect bidders took 69.1% of the competitive bids accepted

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

Indirect bidders took 69.1% of the competitive bids acceptedIndirect bidders 69.1%, Direct bidders 17.0%, Primary dealers 13.9%Indirect bidders69.1%63.7%Direct bidders17.0%19.4%Primary dealers13.9%16.9%Indirect bidders took 69.1% of the competitive bids acceptedIndirect bidders 69.1%, Direct bidders 17.0%, Primary dealers 13.9%Indirect bidders69.1%63.7%Direct bidders17.0%19.4%Primary dealers13.9%16.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders69.163.7
Direct bidders17.019.4
Primary dealers13.916.9

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$41,000,000,000
Bids received$105,543,904,100
Sold$41,000,041,100
Competitive bids accepted$40,839,822,000
Non-competitive bids accepted$160,219,100
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %4.109
Median rate, %4.053
Low rate, %3.990
Interest rate (coupon), %4.000
Bids at the high rate filled, %44.45
Bid-to-cover ratio2.57
Indirect bidders accepted$28,203,372,000
Direct bidders accepted$6,944,100,000
Primary dealers accepted$5,692,350,000
Indirect bidders' share, % (ours)69.1
Direct bidders' share, % (ours)17.0
Primary dealers' share, % (ours)13.9
High minus median, basis points (ours)5.6
Treasury par yield curve, 7-year point, same day, %4.07
High yield minus that point, basis points (ours)3.9

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 ratio2.57Last 24 auctions8 of 2415 of 242.48
Bid-to-cover ratio2.57All 189 since 26 February 200976 of 189110 of 1892.54
High yield4.109Last 24 auctions4 of 2420 of 243.833
High yield4.109Since 26 February 20094 of 189185 of 1892.066
High yield4.109All 238 since 6 February 198053 of 238185 of 2382.280
Indirect bidders' share69.1Last 24 auctions9 of 2415 of 2465.2
Indirect bidders' share69.1All 189 since 26 February 200917 of 189172 of 18958.6
Direct bidders' share17.0Last 24 auctions15 of 249 of 2418.9
Direct bidders' share17.0All 189 since 26 February 200963 of 189126 of 18915.1
Primary dealers' share13.9Last 24 auctions12 of 2412 of 2413.9
Primary dealers' share13.9All 189 since 26 February 2009174 of 18915 of 18928.3
High minus median, basis points5.6Last 24 auctions22 of 242 of 246.9
High minus median, basis points5.6Since 26 February 200961 of 189124 of 1894.8
High minus median, basis points5.6All 238 since 6 February 198065 of 238169 of 2384.4

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 January 2024. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2024/R_20240125_3.pdf. Compiled by 500metrics, "7-year note auction of 25 January 2024 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2024-01-25.

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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