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Treasury auctions · 7-Year Note

7-year note auction of 24 December 2014 (new issue)

The 7-year note sold $29 billion at a high yield of 2.125% on , with a bid-to-cover ratio of 2.39.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 29 Mar 2012 to 24 Dec 2014
High yield at each 7-year note auction, 30 Jan 2013 to 24 Dec 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, 29 Mar 2012 to 24 Dec 2014
Bid-to-cover ratio at each 7-year note auction, 30 Jan 2013 to 24 Dec 2014

Who bought the 7-year note of 24 Dec 2014

Shares of the competitive bids accepted

  • Indirect bidders 56.5%
  • Direct bidders 5.9%
  • Primary dealers 37.6%
This auction, 24 Dec 2014
  • Indirect bidders 50.0%
  • Direct bidders 12.8%
  • Primary dealers 37.1%
The 7-year note auction before, 26 Nov 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 bidders56.5%
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
2.1252.39
1.9602.63
2.0182.42
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

Observed .

Right now

The high yield was 2.125% on 24 December 2014, up from 1.960% at the auction before.

The bid-to-cover ratio of 2.39 was the lowest for a 7-year note since 27 November 2013, with 12 auctions in between.

The indirect bidders' share of 56.5% was the highest for a 7-year note since 29 December 2010, with 49 auctions in between.

Higher than 37 of the 72 since 26 February 2009

Its own history

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

The direct bidders' share was lower than all 24.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 56.5%
  • Direct bidders 5.9%
  • Primary dealers 37.6%

Size

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

Bids received came to $69.245 billion; the bid-to-cover ratio was 2.39.

Its bid-to-cover of 2.39 compares with the 24 auctions before it: lowest 2.36 on , highest 2.72 on ; 8.3% of the way from the low to the high.

2.39

Low 2.36 Midpoint 2.540 High 2.72

The security7-Year, new issue

Coupon
2.125%
Announced
Issued
Matures

It adds to the debt that matures in December 2021.

Understanding this result

Where it stands today

The high yield was 2.125% at this 7-year note auction, the median yield 2.087% and a bid-to-cover ratio of 2.39.

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$69,245,059,300
Sold$29,000,009,300
Competitive bids accepted$28,990,150,000
Non-competitive bids accepted$9,859,300
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %2.125
Median rate, %2.087
Low rate, %2.010
Interest rate (coupon), %2.125
Bids at the high rate filled, %53.86
Bid-to-cover ratio2.39
Indirect bidders accepted$16,379,565,000
Direct bidders accepted$1,715,100,000
Primary dealers accepted$10,895,485,000
Indirect bidders' share, % (ours)56.5
Direct bidders' share, % (ours)5.9
Primary dealers' share, % (ours)37.6
High minus median, basis points (ours)3.8
Treasury par yield curve, 7-year point, same day, %2.09
High yield minus that point, basis points (ours)3.5
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 ratio2.392.5812 of 120 of 12
High yield2.1252.1717 of 125 of 12
Indirect bidders' share56.547.00 of 1212 of 12
Direct bidders' share5.918.112 of 120 of 12
Primary dealers' share37.636.34 of 128 of 12
High minus median, basis points3.83.86 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 ratio2.39Last 24 auctions22 of 242 of 242.58
Bid-to-cover ratio2.39All 72 since 26 February 200967 of 725 of 722.66
High yield2.125Last 24 auctions8 of 2416 of 242.036
High yield2.125Since 26 February 200935 of 7237 of 722.106
High yield2.125All 121 since 6 February 198084 of 12137 of 1212.895
Indirect bidders' share56.5Last 24 auctions0 of 2424 of 2441.9
Indirect bidders' share56.5All 72 since 26 February 20099 of 7263 of 7242.1
Direct bidders' share5.9Last 24 auctions24 of 240 of 2418.0
Direct bidders' share5.9All 72 since 26 February 200961 of 7211 of 7212.9
Primary dealers' share37.6Last 24 auctions13 of 2411 of 2437.9
Primary dealers' share37.6All 72 since 26 February 200948 of 7224 of 7241.4
High minus median, basis points3.8Last 24 auctions10 of 2410 of 243.8
High minus median, basis points3.8Since 26 February 200947 of 7221 of 724.4
High minus median, basis points3.8All 121 since 6 February 198056 of 12161 of 1213.7

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 24 December 2014. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2014/R_20141224_1.pdf. Compiled by 500metrics, "7-year note auction of 24 December 2014 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2014-12-24.

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