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7-year note auction of 27 February 2024 (new issue)

The 7-year note sold $43.817 billion at a high yield of 4.327% on , with a bid-to-cover ratio of 2.58.

Coupon
4.250%
Announced
Issued
Matures

High yield

4.327%

Median yield 4.270%

Bid-to-cover

2.58

▲ +0.01 since 25 Jan

Sold

$43.82 billion

$42 billion offered

Indirect bidders

69.6%

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 April 2021 to 27 February 2024; the latest at 4.327%.1.0%2.0%3.0%4.0%5.0%2021202220232024This auction, 4.327%High yield at the last 36 7-year note auctions36 auctions from 27 April 2021 to 27 February 2024; the latest at 4.327%.2.0%3.0%4.0%5.0%2022202320244.327%

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
4.3272.58
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

Against its own history

Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.582.504 of 128 of 12
High yield4.3274.0743 of 129 of 12
Indirect bidders' share69.667.35 of 127 of 12
Direct bidders' share14.817.812 of 120 of 12
Primary dealers' share15.614.12 of 1210 of 12
High minus median, basis points5.77.110 of 121 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 (40 auctions in between).

Who bought the 7-year note?

Indirect bidders took 69.6% of the competitive bids accepted

Share of competitive bids accepted, %. Grey: the previous 7-year note auction, 25 January 2024

Indirect bidders took 69.6% of the competitive bids acceptedIndirect bidders 69.6%, Direct bidders 14.8%, Primary dealers 15.6%Indirect bidders69.6%69.1%Direct bidders14.8%17.0%Primary dealers15.6%13.9%Indirect bidders took 69.6% of the competitive bids acceptedIndirect bidders 69.6%, Direct bidders 14.8%, Primary dealers 15.6%Indirect bidders69.6%69.1%Direct bidders14.8%17.0%Primary dealers15.6%13.9%
The shares as a table
Shares of competitive bids accepted, %
BidderThis auctionPrevious
Indirect bidders69.669.1
Direct bidders14.817.0
Primary dealers15.613.9

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$42,000,000,000
Bids received$110,048,696,800
Sold$43,817,110,700
Competitive bids accepted$41,845,698,900
Non-competitive bids accepted$154,341,700
Federal Reserve (SOMA) add-on$1,817,070,100
Foreign and international (FIMA) non-competitive$0
High yield, %4.327
Median rate, %4.270
Low rate, %4.217
Interest rate (coupon), %4.250
Bids at the high rate filled, %59.81
Bid-to-cover ratio2.58
Indirect bidders accepted$29,112,088,900
Direct bidders accepted$6,206,400,000
Primary dealers accepted$6,527,210,000
Indirect bidders' share, % (ours)69.6
Direct bidders' share, % (ours)14.8
Primary dealers' share, % (ours)15.6
High minus median, basis points (ours)5.7
Treasury par yield curve, 7-year point, same day, %4.34
High yield minus that point, basis points (ours)-1.3

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 ratio2.58Last 24 auctions8 of 2416 of 242.48
Bid-to-cover ratio2.58All 190 since 26 February 200975 of 190114 of 1902.54
High yield4.327Last 24 auctions3 of 2421 of 243.849
High yield4.327Since 26 February 20093 of 190187 of 1902.075
High yield4.327All 239 since 6 February 198052 of 239187 of 2392.280
Indirect bidders' share69.6Last 24 auctions9 of 2415 of 2465.5
Indirect bidders' share69.6All 190 since 26 February 200916 of 190174 of 19058.8
Direct bidders' share14.8Last 24 auctions24 of 240 of 2418.4
Direct bidders' share14.8All 190 since 26 February 200998 of 19092 of 19015.2
Primary dealers' share15.6Last 24 auctions5 of 2419 of 2413.8
Primary dealers' share15.6All 190 since 26 February 2009163 of 19027 of 19028.1
High minus median, basis points5.7Last 24 auctions20 of 243 of 246.8
High minus median, basis points5.7Since 26 February 200957 of 190129 of 1904.8
High minus median, basis points5.7All 239 since 6 February 198061 of 239174 of 2394.4

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 27 February 2024. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2024/R_20240227_2.pdf. Compiled by 500metrics, "7-year note auction of 27 February 2024 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2024-02-27.

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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