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Treasury auctions · 7-Year Note

7-year note auction of 19 December 2012 (new issue)

The 7-year note sold $29 billion at a high yield of 1.233% on , with a bid-to-cover ratio of 2.72.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 28 Jan 2010 to 19 Dec 2012
High yield at each 7-year note auction, 29 Dec 2010 to 19 Dec 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, 28 Jan 2010 to 19 Dec 2012
Bid-to-cover ratio at each 7-year note auction, 29 Dec 2010 to 19 Dec 2012

Who bought the 7-year note of 19 Dec 2012

Shares of the competitive bids accepted

  • Indirect bidders 39.9%
  • Direct bidders 23.1%
  • Primary dealers 37.0%
This auction, 19 Dec 2012
  • Indirect bidders 39.1%
  • Direct bidders 19.7%
  • Primary dealers 41.2%
The 7-year note auction before, 29 Nov 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 bidders39.9%
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
1.2332.72
1.0452.81
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

Observed .

Right now

The high yield was 1.233% on 19 December 2012, up from 1.045% at the auction before.

The direct bidders' share of 23.1% was the highest of all 46 earlier 7-year note auctions we hold.

The primary dealers' share of 37.0% was the lowest for a 7-year note since 29 December 2010, with 23 auctions in between.

Higher than 6 of the 46 since 26 February 2009

Its own history

Against the previous 24 7-year note auctions, the direct bidders' share was higher than all 24.

The indirect bidders' share was higher than 11 of them.

See every measure against earlier auctions

Who bought

Indirect bidders took the largest share of the competitive bids accepted.

  • Indirect bidders 39.9%
  • Direct bidders 23.1%
  • Primary dealers 37.0%

Size

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

Bids received came to $78.831 billion; the bid-to-cover ratio was 2.72.

Its bid-to-cover of 2.72 compares with the 24 auctions before it: lowest 2.56 on , highest 3.24 on ; 23.5% of the way from the low to the high.

2.72

Low 2.56 Midpoint 2.900 High 3.24

The security7-Year, new issue

Coupon
1.125%
Announced
Issued
Matures

It adds to the debt that matures in December 2019.

Understanding this result

Where it stands today

The high yield was 1.233% at this 7-year note auction, the median yield 1.200% and a bid-to-cover ratio of 2.72.

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$78,831,193,400
Sold$29,000,003,400
Competitive bids accepted$28,971,710,000
Non-competitive bids accepted$28,293,400
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %1.233
Median rate, %1.200
Low rate, %1.149
Interest rate (coupon), %1.125
Bids at the high rate filled, %92.81
Bid-to-cover ratio2.72
Indirect bidders accepted$11,557,710,000
Direct bidders accepted$6,694,000,000
Primary dealers accepted$10,720,000,000
Indirect bidders' share, % (ours)39.9
Direct bidders' share, % (ours)23.1
Primary dealers' share, % (ours)37.0
High minus median, basis points (ours)3.3
Treasury par yield curve, 7-year point, same day, %1.24
High yield minus that point, basis points (ours)-0.7
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 ratio2.722.726 of 125 of 12
High yield1.2331.2356 of 126 of 12
Indirect bidders' share39.940.56 of 126 of 12
Direct bidders' share23.116.30 of 1212 of 12
Primary dealers' share37.044.012 of 120 of 12
High minus median, basis points3.34.29 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 ratio2.72Last 24 auctions14 of 249 of 242.78
Bid-to-cover ratio2.72All 46 since 26 February 200927 of 4617 of 462.77
High yield1.233Last 24 auctions18 of 246 of 241.463
High yield1.233Since 26 February 200940 of 466 of 462.412
High yield1.233All 95 since 6 February 198089 of 956 of 956.050
Indirect bidders' share39.9Last 24 auctions13 of 2411 of 2441.7
Indirect bidders' share39.9All 46 since 26 February 200931 of 4615 of 4642.5
Direct bidders' share23.1Last 24 auctions0 of 2424 of 2412.4
Direct bidders' share23.1All 46 since 26 February 20090 of 4646 of 469.1
Primary dealers' share37.0Last 24 auctions23 of 241 of 2444.0
Primary dealers' share37.0All 46 since 26 February 200937 of 469 of 4643.7
High minus median, basis points3.3Last 24 auctions19 of 245 of 244.8
High minus median, basis points3.3Since 26 February 200938 of 468 of 465.8
High minus median, basis points3.3All 95 since 6 February 198047 of 9548 of 953.2

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 19 December 2012. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20121219_1.pdf. Compiled by 500metrics, "7-year note auction of 19 December 2012 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2012-12-19.

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