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Treasury auctions · 7-Year Note

7-year note auction of 26 July 2012 (new issue)

The 7-year note sold $29 billion at a high yield of 0.954% on , with a bid-to-cover ratio of 2.64.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 27 Aug 2009 to 26 Jul 2012
High yield at each 7-year note auction, 29 Jul 2010 to 26 Jul 2012

Bid-to-cover ratio at each 7-year note auction

The last 36 auctions, this one last

Bid-to-cover ratio at each 7-year note auction, 27 Aug 2009 to 26 Jul 2012
Bid-to-cover ratio at each 7-year note auction, 29 Jul 2010 to 26 Jul 2012

Who bought the 7-year note of 26 Jul 2012

Shares of the competitive bids accepted

  • Indirect bidders 46.3%
  • Direct bidders 7.1%
  • Primary dealers 46.6%
This auction, 26 Jul 2012
  • Indirect bidders 42.0%
  • Direct bidders 6.5%
  • Primary dealers 51.5%
The 7-year note auction before, 28 Jun 2012

Each point is one 7-year note auction, this one last; pointing at the chart shows its date and figures.

Select a line to followLatest:

  • Indirect bidders46.3%
Inspect and compare dates
High yield and bid-to-cover of the last 36 7-year note auctions, newest first
AuctionHigh yield, %Bid-to-cover
0.9542.64
1.0752.64
1.2032.80
1.3472.83
1.5902.72
1.4183.11
1.3592.73
1.4302.68
1.4153.20
1.7912.59
1.4963.02
1.5802.76
2.2802.63
2.4302.62
2.4293.24
2.7122.63
2.8952.79
2.8542.86
2.7442.85
2.8302.86
2.2532.63
1.9703.06
1.8903.04
1.9892.98
2.3942.78
2.5753.01
2.8152.88
3.2102.82
3.3742.61
3.0782.98
3.1272.85
3.3452.72
2.8352.76
3.1412.65
3.0052.79
3.0922.74

Observed .

Right now

The high yield of 0.954% on 26 July 2012 was the lowest of all 90 earlier 7-year note auctions we hold.

Lower than all 41 since 26 February 2009

Its own history

Against the previous 24 7-year note auctions, the high yield was lower than all 24.

The primary dealers' share was higher than 16 of them.

See every measure against earlier auctions

Who bought

Primary dealers took the largest share of the competitive bids accepted.

  • Indirect bidders 46.3%
  • Direct bidders 7.1%
  • Primary dealers 46.6%

Size

Treasury sold $29 billion of the $29 billion offered.

Bids received came to $76.423 billion; the bid-to-cover ratio was 2.64.

Its bid-to-cover of 2.64 compares with the 24 auctions before it: lowest 2.59 on , highest 3.24 on ; 7.7% of the way from the low to the high.

2.64

Low 2.59 Midpoint 2.915 High 3.24

The security7-Year, new issue

Coupon
0.875%
Announced
Issued
Matures

It adds to the debt that matures in July 2019.

Understanding this result

Where it stands today

The high yield was 0.954% at this 7-year note auction, the median yield 0.910% and a bid-to-cover ratio of 2.64.

What do these figures measure?

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.

Read more

How does it compare with the par yield curve?

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 these figures cannot tell

  • 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 numbers behind the chart

What did Treasury publish for this auction?Every field, to the dollar
FieldValue
Offered as7-Year, new issue
Offering amount$29,000,000,000
Bids received$76,422,631,900
Sold$29,000,021,900
Competitive bids accepted$28,991,990,000
Non-competitive bids accepted$8,031,900
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %0.954
Median rate, %0.910
Low rate, %0.840
Interest rate (coupon), %0.875
Bids at the high rate filled, %96.12
Bid-to-cover ratio2.64
Indirect bidders accepted$13,423,600,000
Direct bidders accepted$2,046,000,000
Primary dealers accepted$13,522,390,000
Indirect bidders' share, % (ours)46.3
Direct bidders' share, % (ours)7.1
Primary dealers' share, % (ours)46.6
High minus median, basis points (ours)4.4
Treasury par yield curve, 7-year point, same day, %0.94
High yield minus that point, basis points (ours)1.4
How does it compare with earlier auctions?The previous 12 auctions, then every window
Against the previous 12 auctions of the 7-year note
MeasureThis auctionMedianHigherLower
Bid-to-cover ratio2.642.749 of 122 of 12
High yield0.9541.42412 of 120 of 12
Indirect bidders' share46.341.71 of 1211 of 12
Direct bidders' share7.113.211 of 121 of 12
Primary dealers' share46.644.44 of 128 of 12
High minus median, basis points4.45.68 of 123 of 12

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

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 ratio2.64Last 24 auctions18 of 245 of 242.80
Bid-to-cover ratio2.64All 41 since 26 February 200929 of 4111 of 412.78
High yield0.954Last 24 auctions24 of 240 of 241.930
High yield0.954Since 26 February 200941 of 410 of 412.575
High yield0.954All 90 since 6 February 198090 of 900 of 906.445
Indirect bidders' share46.3Last 24 auctions9 of 2415 of 2442.2
Indirect bidders' share46.3All 41 since 26 February 200919 of 4122 of 4142.8
Direct bidders' share7.1Last 24 auctions19 of 245 of 2410.4
Direct bidders' share7.1All 41 since 26 February 200927 of 4114 of 418.8
Primary dealers' share46.6Last 24 auctions8 of 2416 of 2444.2
Primary dealers' share46.6All 41 since 26 February 200914 of 4127 of 4142.4
High minus median, basis points4.4Last 24 auctions14 of 248 of 245.6
High minus median, basis points4.4Since 26 February 200928 of 4111 of 416.1
High minus median, basis points4.4All 90 since 6 February 198033 of 9055 of 903.0

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

When are the figures from, and how are they cited?Dates and how to cite

Observed .

Shares of competitive bids, grades against earlier auctions and the high-minus-median spread are computed by 500metrics from Treasury's published fields.

Observed .

How to cite this

U.S. Treasury, Bureau of the Fiscal Service, Fiscal Data, Treasury Securities Auctions Data, auction of 26 July 2012. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20120726_1.pdf. Compiled by 500metrics, "7-year note auction of 26 July 2012 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2012-07-26.

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