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Treasury auctions · 7-Year Note

7-year note auction of 23 November 2016 (new issue)

The 7-year note sold $30.98 billion at a high yield of 2.215% on , with a bid-to-cover ratio of 2.68.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 19 Dec 2013 to 23 Nov 2016
High yield at each 7-year note auction, 26 Nov 2014 to 23 Nov 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, 19 Dec 2013 to 23 Nov 2016
Bid-to-cover ratio at each 7-year note auction, 26 Nov 2014 to 23 Nov 2016

Who bought the 7-year note of 23 Nov 2016

Shares of the competitive bids accepted

  • Indirect bidders 72.7%
  • Direct bidders 9.4%
  • Primary dealers 18.0%
This auction, 23 Nov 2016
  • Indirect bidders 61.5%
  • Direct bidders 13.2%
  • Primary dealers 25.3%
The 7-year note auction before, 27 Oct 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 bidders72.7%
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
2.2152.68
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

Observed .

Right now

The high yield of 2.215% on 23 November 2016 was the highest for a 7-year note since 25 September 2014.

The bid-to-cover ratio of 2.68 was the highest for a 7-year note since 27 February 2014, with 32 auctions in between.

The indirect bidders' share of 72.7% was the highest of all 95 earlier 7-year note auctions we hold.

Higher than 62 of the 95 since 26 February 2009

Its own history

Against the previous 24 7-year note auctions, the bid-to-cover ratio, the high yield and the indirect bidders' share were higher than all 24.

The high minus median was higher than 15 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 72.7%
  • Direct bidders 9.4%
  • Primary dealers 18.0%

Size

Treasury sold $30.98 billion of the $28 billion offered.

Bids received came to $78.094 billion; the bid-to-cover ratio was 2.68.

Its bid-to-cover of 2.68 compares with the 24 auctions before it: lowest 2.25 on , highest 2.68 on ; 100.0% of the way from the low to the high.

2.68

Low 2.25 Midpoint 2.465 High 2.68

The security7-Year, new issue

Coupon
2.125%
Announced
Issued
Matures

It adds to the debt that matures in November 2023.

Understanding this result

Where it stands today

The high yield was 2.215% at this 7-year note auction, the median yield 2.170% and a bid-to-cover ratio of 2.68.

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$78,093,830,700
Sold$30,980,130,700
Competitive bids accepted$27,983,649,000
Non-competitive bids accepted$16,389,300
Federal Reserve (SOMA) add-on$2,980,092,400
Foreign and international (FIMA) non-competitive$0
High yield, %2.215
Median rate, %2.170
Low rate, %2.041
Interest rate (coupon), %2.125
Bids at the high rate filled, %1.80
Bid-to-cover ratio2.68
Indirect bidders accepted$20,331,499,000
Direct bidders accepted$2,618,000,000
Primary dealers accepted$5,034,150,000
Indirect bidders' share, % (ours)72.7
Direct bidders' share, % (ours)9.4
Primary dealers' share, % (ours)18.0
High minus median, basis points (ours)4.5
Treasury par yield curve, 7-year point, same day, %2.17
High yield minus that point, basis points (ours)4.5
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 ratio2.682.510 of 1212 of 12
High yield2.2151.6200 of 1212 of 12
Indirect bidders' share72.760.40 of 1212 of 12
Direct bidders' share9.413.810 of 122 of 12
Primary dealers' share18.026.811 of 121 of 12
High minus median, basis points4.54.46 of 126 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 ratio2.68Last 24 auctions0 of 2424 of 242.50
Bid-to-cover ratio2.68All 95 since 26 February 200933 of 9561 of 952.63
High yield2.215Last 24 auctions0 of 2424 of 241.802
High yield2.215Since 26 February 200933 of 9562 of 951.989
High yield2.215All 144 since 6 February 198082 of 14462 of 1442.412
Indirect bidders' share72.7Last 24 auctions0 of 2424 of 2456.6
Indirect bidders' share72.7All 95 since 26 February 20090 of 9595 of 9547.4
Direct bidders' share9.4Last 24 auctions20 of 244 of 2412.8
Direct bidders' share9.4All 95 since 26 February 200967 of 9528 of 9512.8
Primary dealers' share18.0Last 24 auctions23 of 241 of 2430.9
Primary dealers' share18.0All 95 since 26 February 200994 of 951 of 9538.5
High minus median, basis points4.5Last 24 auctions9 of 2415 of 244.1
High minus median, basis points4.5Since 26 February 200939 of 9553 of 954.2
High minus median, basis points4.5All 144 since 6 February 198044 of 14497 of 1443.8

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 23 November 2016. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2016/R_20161123_1.pdf. Compiled by 500metrics, "7-year note auction of 23 November 2016 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2016-11-23.

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