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Treasury auctions · 7-Year Note

7-year note auction of 25 October 2012 (new issue)

The 7-year note sold $29 billion at a high yield of 1.267% on , with a bid-to-cover ratio of 2.56.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 25 Nov 2009 to 25 Oct 2012
High yield at each 7-year note auction, 28 Oct 2010 to 25 Oct 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, 25 Nov 2009 to 25 Oct 2012
Bid-to-cover ratio at each 7-year note auction, 28 Oct 2010 to 25 Oct 2012

Who bought the 7-year note of 25 Oct 2012

Shares of the competitive bids accepted

  • Indirect bidders 38.2%
  • Direct bidders 18.0%
  • Primary dealers 43.7%
This auction, 25 Oct 2012
  • Indirect bidders 34.9%
  • Direct bidders 17.0%
  • Primary dealers 48.1%
The 7-year note auction before, 27 Sep 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 bidders38.2%
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
1.2672.56
1.0552.61
1.0812.80
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

Observed .

Right now

The high yield of 1.267% on 25 October 2012 was the highest for a 7-year note since 26 April 2012.

The bid-to-cover ratio of 2.56 was the lowest for a 7-year note since 28 May 2009, with 40 auctions in between.

Higher than 5 of the 44 since 26 February 2009

Its own history

Against the previous 24 7-year note auctions, the bid-to-cover ratio was lower than all 24.

The direct bidders' share was higher than 22 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 38.2%
  • Direct bidders 18.0%
  • Primary dealers 43.7%

Size

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

Bids received came to $74.21 billion; the bid-to-cover ratio was 2.56.

Its bid-to-cover of 2.56 compares with the 24 auctions before it: lowest 2.56 on , highest 3.24 on ; 0.0% of the way from the low to the high.

2.56

Low 2.56 Midpoint 2.900 High 3.24

The security7-Year, new issue

Coupon
1.250%
Announced
Issued
Matures

It adds to the debt that matures in October 2019.

Understanding this result

Where it stands today

The high yield was 1.267% at this 7-year note auction, the median yield 1.227% and a bid-to-cover ratio of 2.56.

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$74,209,799,700
Sold$29,000,049,700
Competitive bids accepted$28,942,450,000
Non-competitive bids accepted$7,599,700
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$50,000,000
High yield, %1.267
Median rate, %1.227
Low rate, %1.160
Interest rate (coupon), %1.250
Bids at the high rate filled, %15.85
Bid-to-cover ratio2.56
Indirect bidders accepted$11,069,200,000
Direct bidders accepted$5,220,000,000
Primary dealers accepted$12,653,250,000
Indirect bidders' share, % (ours)38.2
Direct bidders' share, % (ours)18.0
Primary dealers' share, % (ours)43.7
High minus median, basis points (ours)4.0
Treasury par yield curve, 7-year point, same day, %1.28
High yield minus that point, basis points (ours)-1.3
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 ratio2.562.7212 of 120 of 12
High yield1.2671.3537 of 125 of 12
Indirect bidders' share38.240.98 of 124 of 12
Direct bidders' share18.014.62 of 1210 of 12
Primary dealers' share43.744.69 of 123 of 12
High minus median, basis points4.04.47 of 124 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 ratio2.56Last 24 auctions24 of 240 of 242.78
Bid-to-cover ratio2.56All 44 since 26 February 200940 of 444 of 442.77
High yield1.267Last 24 auctions19 of 245 of 241.585
High yield1.267Since 26 February 200939 of 445 of 442.430
High yield1.267All 93 since 6 February 198088 of 935 of 936.410
Indirect bidders' share38.2Last 24 auctions19 of 245 of 2442.0
Indirect bidders' share38.2All 44 since 26 February 200936 of 448 of 4442.8
Direct bidders' share18.0Last 24 auctions2 of 2422 of 2411.7
Direct bidders' share18.0All 44 since 26 February 20092 of 4442 of 448.9
Primary dealers' share43.7Last 24 auctions16 of 248 of 2444.5
Primary dealers' share43.7All 44 since 26 February 200923 of 4421 of 4443.8
High minus median, basis points4.0Last 24 auctions16 of 246 of 245.4
High minus median, basis points4.0Since 26 February 200931 of 4410 of 445.8
High minus median, basis points4.0All 93 since 6 February 198036 of 9350 of 933.1

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 25 October 2012. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20121025_1.pdf. Compiled by 500metrics, "7-year note auction of 25 October 2012 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2012-10-25.

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