500metrics

Treasury auctions · 7-Year Note

7-year note auction of 25 September 2014 (new issue)

The 7-year note sold $29 billion at a high yield of 2.235% on , with a bid-to-cover ratio of 2.48.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 21 Dec 2011 to 25 Sep 2014
High yield at each 7-year note auction, 27 Sep 2012 to 25 Sep 2014

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, 21 Dec 2011 to 25 Sep 2014
Bid-to-cover ratio at each 7-year note auction, 27 Sep 2012 to 25 Sep 2014

Who bought the 7-year note of 25 Sep 2014

Shares of the competitive bids accepted

  • Indirect bidders 48.3%
  • Direct bidders 10.0%
  • Primary dealers 41.7%
This auction, 25 Sep 2014
  • Indirect bidders 48.8%
  • Direct bidders 20.4%
  • Primary dealers 30.7%
The 7-year note auction before, 28 Aug 2014

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 bidders48.3%
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
2.2352.48
2.0452.57
2.2502.58
2.1522.44
2.0102.60
2.3172.60
2.2582.59
2.1052.72
2.1902.65
2.3852.45
2.1062.36
1.8702.66
2.0582.46
1.4362.67
2.2212.43
1.6242.38
2.0262.54
1.9322.61
1.4962.70
1.1552.71
1.2482.56
1.2602.65
1.4162.60
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

Observed .

Right now

The high yield was 2.235% on 25 September 2014, up from 2.045% at the auction before.

The direct bidders' share of 10.0% was the lowest for a 7-year note since 26 July 2012, with 27 auctions in between.

Higher than 38 of the 69 since 26 February 2009

Its own history

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

The indirect bidders' share was higher than 21 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 48.3%
  • Direct bidders 10.0%
  • Primary dealers 41.7%

Size

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

Bids received came to $71.859 billion; the bid-to-cover ratio was 2.48.

Its bid-to-cover of 2.48 compares with the 24 auctions before it: lowest 2.36 on , highest 2.81 on ; 26.7% of the way from the low to the high.

2.48

Low 2.36 Midpoint 2.585 High 2.81

The security7-Year, new issue

Coupon
2.125%
Announced
Issued
Matures

It adds to the debt that matures in September 2021.

Understanding this result

Where it stands today

The high yield was 2.235% at this 7-year note auction, the median yield 2.197% and a bid-to-cover ratio of 2.48.

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$71,859,187,500
Sold$29,000,003,500
Competitive bids accepted$28,981,216,000
Non-competitive bids accepted$18,787,500
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.235
Median rate, %2.197
Low rate, %2.117
Interest rate (coupon), %2.125
Bids at the high rate filled, %61.20
Bid-to-cover ratio2.48
Indirect bidders accepted$14,005,736,000
Direct bidders accepted$2,904,120,000
Primary dealers accepted$12,071,360,000
Indirect bidders' share, % (ours)48.3
Direct bidders' share, % (ours)10.0
Primary dealers' share, % (ours)41.7
High minus median, basis points (ours)3.8
Treasury par yield curve, 7-year point, same day, %2.21
High yield minus that point, basis points (ours)2.5
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 ratio2.482.588 of 124 of 12
High yield2.2352.1294 of 128 of 12
Indirect bidders' share48.341.92 of 1210 of 12
Direct bidders' share10.019.512 of 120 of 12
Primary dealers' share41.734.92 of 1210 of 12
High minus median, basis points3.84.08 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 ratio2.48Last 24 auctions18 of 246 of 242.60
Bid-to-cover ratio2.48All 69 since 26 February 200960 of 699 of 692.67
High yield2.235Last 24 auctions4 of 2420 of 242.018
High yield2.235Since 26 February 200931 of 6938 of 692.106
High yield2.235All 118 since 6 February 198080 of 11838 of 1183.042
Indirect bidders' share48.3Last 24 auctions3 of 2421 of 2441.0
Indirect bidders' share48.3All 69 since 26 February 200921 of 6948 of 6942.0
Direct bidders' share10.0Last 24 auctions24 of 240 of 2419.6
Direct bidders' share10.0All 69 since 26 February 200943 of 6926 of 6912.9
Primary dealers' share41.7Last 24 auctions7 of 2417 of 2438.2
Primary dealers' share41.7All 69 since 26 February 200934 of 6935 of 6941.6
High minus median, basis points3.8Last 24 auctions11 of 2412 of 243.8
High minus median, basis points3.8Since 26 February 200947 of 6921 of 694.4
High minus median, basis points3.8All 118 since 6 February 198056 of 11861 of 1183.6

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 September 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20140925_1.pdf. Compiled by 500metrics, "7-year note auction of 25 September 2014 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2014-09-25.

Page updated