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Treasury auctions · 7-Year Note

7-year note auction of 27 October 2016 (new issue)

The 7-year note sold $29.693 billion at a high yield of 1.653% on , with a bid-to-cover ratio of 2.49.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 27 Nov 2013 to 27 Oct 2016
High yield at each 7-year note auction, 30 Oct 2014 to 27 Oct 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, 27 Nov 2013 to 27 Oct 2016
Bid-to-cover ratio at each 7-year note auction, 30 Oct 2014 to 27 Oct 2016

Who bought the 7-year note of 27 Oct 2016

Shares of the competitive bids accepted

  • Indirect bidders 61.5%
  • Direct bidders 13.2%
  • Primary dealers 25.3%
This auction, 27 Oct 2016
  • Indirect bidders 59.4%
  • Direct bidders 10.5%
  • Primary dealers 30.2%
The 7-year note auction before, 28 Sep 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 bidders61.5%
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
1.6532.49
1.3892.47
1.4232.38
1.3402.51
1.4972.56
1.6522.57
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

Observed .

Right now

The high yield of 1.653% on 27 October 2016 was the highest for a 7-year note since 28 January 2016.

Higher than 32 of the 94 since 26 February 2009

Its own history

Against the previous 24 7-year note auctions, the high minus median was higher than 19 of the 24.

The primary dealers' share was higher than 5 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 61.5%
  • Direct bidders 13.2%
  • Primary dealers 25.3%

Size

Treasury sold $29.693 billion of the $28 billion offered.

Bids received came to $71.442 billion; the bid-to-cover ratio was 2.49.

Its bid-to-cover of 2.49 compares with the 24 auctions before it: lowest 2.25 on , highest 2.65 on ; 60.0% of the way from the low to the high.

2.49

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 October 2023.

Understanding this result

Where it stands today

The high yield was 1.653% at this 7-year note auction, the median yield 1.600% and a bid-to-cover ratio of 2.49.

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$71,442,188,100
Sold$29,692,705,500
Competitive bids accepted$27,984,258,400
Non-competitive bids accepted$15,742,800
Federal Reserve (SOMA) add-on$1,692,704,300
Foreign and international (FIMA) non-competitive$0
High yield, %1.653
Median rate, %1.600
Low rate, %1.535
Interest rate (coupon), %1.625
Bids at the high rate filled, %23.26
Bid-to-cover ratio2.49
Indirect bidders accepted$17,212,936,600
Direct bidders accepted$3,684,000,000
Primary dealers accepted$7,087,321,800
Indirect bidders' share, % (ours)61.5
Direct bidders' share, % (ours)13.2
Primary dealers' share, % (ours)25.3
High minus median, basis points (ours)5.3
Treasury par yield curve, 7-year point, same day, %1.64
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 ratio2.492.518 of 124 of 12
High yield1.6531.6204 of 128 of 12
Indirect bidders' share61.560.96 of 126 of 12
Direct bidders' share13.214.08 of 124 of 12
Primary dealers' share25.326.87 of 125 of 12
High minus median, basis points5.34.21 of 129 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 ratio2.49Last 24 auctions12 of 2411 of 242.50
Bid-to-cover ratio2.49All 94 since 26 February 200972 of 9421 of 942.63
High yield1.653Last 24 auctions15 of 249 of 241.816
High yield1.653Since 26 February 200962 of 9432 of 942.000
High yield1.653All 143 since 6 February 1980111 of 14332 of 1432.429
Indirect bidders' share61.5Last 24 auctions7 of 2417 of 2456.3
Indirect bidders' share61.5All 94 since 26 February 200912 of 9482 of 9447.3
Direct bidders' share13.2Last 24 auctions11 of 2413 of 2412.8
Direct bidders' share13.2All 94 since 26 February 200944 of 9450 of 9412.8
Primary dealers' share25.3Last 24 auctions19 of 245 of 2431.4
Primary dealers' share25.3All 94 since 26 February 200989 of 945 of 9438.7
High minus median, basis points5.3Last 24 auctions3 of 2419 of 244.0
High minus median, basis points5.3Since 26 February 200929 of 9463 of 944.2
High minus median, basis points5.3All 143 since 6 February 198033 of 143108 of 1433.8

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 27 October 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20161027_1.pdf. Compiled by 500metrics, "7-year note auction of 27 October 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-10-27.

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