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Treasury auctions · 7-Year Note

7-year note auction of 28 April 2016 (new issue)

The 7-year note sold $35.441 billion at a high yield of 1.634% on , with a bid-to-cover ratio of 2.65.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 25 Jul 2013 to 28 Apr 2016
High yield at each 7-year note auction, 29 May 2014 to 28 Apr 2016

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 Jul 2013 to 28 Apr 2016
Bid-to-cover ratio at each 7-year note auction, 29 May 2014 to 28 Apr 2016

Who bought the 7-year note of 28 Apr 2016

Shares of the competitive bids accepted

  • Indirect bidders 65.5%
  • Direct bidders 14.2%
  • Primary dealers 20.2%
This auction, 28 Apr 2016
  • Indirect bidders 57.8%
  • Direct bidders 15.5%
  • Primary dealers 26.7%
The 7-year note auction before, 30 Mar 2016

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 bidders65.5%
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
1.6342.65
1.6062.51
1.5682.25
1.7592.63
2.1612.34
2.0132.51
1.8852.55
1.8132.51
1.9302.53
2.0212.47
2.1532.38
1.8882.49
1.8202.44
1.7922.32
1.8342.37
1.5902.50
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

Observed .

Right now

The high yield was 1.634% on 28 April 2016, up from 1.606% at the auction before.

The bid-to-cover ratio of 2.65 was the highest for a 7-year note since 27 February 2014, with 25 auctions in between.

Higher than 26 of the 88 since 26 February 2009

Its own history

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

The indirect bidders' share was higher than 23 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 65.5%
  • Direct bidders 14.2%
  • Primary dealers 20.2%

Size

Treasury sold $35.441 billion of the $28 billion offered.

Bids received came to $81.711 billion; the bid-to-cover ratio was 2.65.

Its bid-to-cover of 2.65 compares with the 24 auctions before it: lowest 2.25 on , highest 2.65 on ; 100.0% of the way from the low to the high.

2.65

Low 2.25 Midpoint 2.450 High 2.65

The security7-Year, new issue

Coupon
1.625%
Announced
Issued
Matures

It adds to the debt that matures in April 2023.

Understanding this result

Where it stands today

The high yield was 1.634% at this 7-year note auction, the median yield 1.600% and a bid-to-cover ratio of 2.65.

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$28,000,000,000
Bids received$81,710,514,100
Sold$35,440,718,100
Competitive bids accepted$27,973,669,000
Non-competitive bids accepted$26,339,300
Federal Reserve (SOMA) add-on$7,440,709,800
Foreign and international (FIMA) non-competitive$0
High yield, %1.634
Median rate, %1.600
Low rate, %1.490
Interest rate (coupon), %1.625
Bids at the high rate filled, %59.85
Bid-to-cover ratio2.65
Indirect bidders accepted$18,335,634,000
Direct bidders accepted$3,979,000,000
Primary dealers accepted$5,659,035,000
Indirect bidders' share, % (ours)65.5
Direct bidders' share, % (ours)14.2
Primary dealers' share, % (ours)20.2
High minus median, basis points (ours)3.4
Treasury par yield curve, 7-year point, same day, %1.60
High yield minus that point, basis points (ours)3.4
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 ratio2.652.500 of 1212 of 12
High yield1.6341.88610 of 122 of 12
Indirect bidders' share65.555.01 of 1211 of 12
Direct bidders' share14.213.82 of 1210 of 12
Primary dealers' share20.231.911 of 121 of 12
High minus median, basis points3.44.010 of 122 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 ratio2.65Last 24 auctions0 of 2424 of 242.50
Bid-to-cover ratio2.65All 88 since 26 February 200936 of 8849 of 882.63
High yield1.634Last 24 auctions21 of 243 of 241.985
High yield1.634Since 26 February 200962 of 8826 of 882.020
High yield1.634All 137 since 6 February 1980111 of 13726 of 1372.630
Indirect bidders' share65.5Last 24 auctions1 of 2423 of 2451.6
Indirect bidders' share65.5All 88 since 26 February 20092 of 8886 of 8846.4
Direct bidders' share14.2Last 24 auctions9 of 2415 of 2414.0
Direct bidders' share14.2All 88 since 26 February 200934 of 8854 of 8812.9
Primary dealers' share20.2Last 24 auctions23 of 241 of 2434.6
Primary dealers' share20.2All 88 since 26 February 200987 of 881 of 8839.0
High minus median, basis points3.4Last 24 auctions22 of 242 of 244.0
High minus median, basis points3.4Since 26 February 200970 of 8817 of 884.2
High minus median, basis points3.4All 137 since 6 February 198079 of 13757 of 1373.8

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 28 April 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20160428_2.pdf. Compiled by 500metrics, "7-year note auction of 28 April 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-04-28.

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