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Treasury auctions · 5-Year Note, reopening

7-year note auction of 27 December 2017 (reopening)

The 7-year note sold $38.445 billion at a high yield of 2.245% on , with a bid-to-cover ratio of 2.36.

High yield at each 7-year note auction

The last 36 auctions, this one last

High yield at each 7-year note auction, 26 Mar 2015 to 27 Dec 2017
High yield at each 7-year note auction, 30 Dec 2015 to 27 Dec 2017

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, 26 Mar 2015 to 27 Dec 2017
Bid-to-cover ratio at each 7-year note auction, 30 Dec 2015 to 27 Dec 2017

Who bought the 7-year note of 27 Dec 2017

Shares of the competitive bids accepted

  • Indirect bidders 58.4%
  • Direct bidders 7.9%
  • Primary dealers 33.7%
This auction, 27 Dec 2017
  • Indirect bidders 58.6%
  • Direct bidders 13.7%
  • Primary dealers 27.7%
The 7-year note auction before, 28 Nov 2017

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 bidders58.4%
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
2.2452.36
2.2302.36
2.0662.46
2.2802.39
2.1302.70
1.9412.46
2.1262.54
2.0562.46
2.0602.54
2.0842.73
1.2802.85
2.2152.56
2.1972.49
2.3352.45
2.2842.54
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

Observed .

Right now

The high yield was 2.245% on 27 December 2017, up from 2.230% at the auction before.

The indirect bidders' share of 58.4% was the lowest for a 7-year note since 25 August 2016, with 17 auctions in between.

The direct bidders' share of 7.9% was the lowest for a 7-year note since 26 January 2017, with 12 auctions in between.

Higher than 76 of the 110 since 26 February 2009

Its own history

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

The high yield 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 58.4%
  • Direct bidders 7.9%
  • Primary dealers 33.7%

Size

Treasury sold $38.445 billion of the $34 billion offered.

Bids received came to $84.806 billion; the bid-to-cover ratio was 2.36.

Its bid-to-cover of 2.36 compares with the 24 auctions before it: lowest 2.25 on , highest 2.85 on ; 18.3% of the way from the low to the high.

2.36

Low 2.25 Midpoint 2.550 High 2.85

The security5-Year, reopening

Coupon
2.125%
Announced
Issued
Matures

It adds to the debt that matures in December 2022.

Understanding this result

Where it stands today

The high yield was 2.245% at this 7-year note auction, the median yield 2.190% and a bid-to-cover ratio of 2.36.

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 (5-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 as5-Year, reopening
Offering amount$34,000,000,000
Bids received$84,805,662,200
Sold$38,444,665,200
Competitive bids accepted$33,968,841,000
Non-competitive bids accepted$31,248,700
Federal Reserve (SOMA) add-on$4,444,575,500
Foreign and international (FIMA) non-competitive$0
High yield, %2.245
Median rate, %2.190
Low rate, %2.100
Interest rate (coupon), %2.125
Bids at the high rate filled, %2.99
Bid-to-cover ratio2.36
Indirect bidders accepted$19,838,386,000
Direct bidders accepted$2,698,000,000
Primary dealers accepted$11,432,455,000
Indirect bidders' share, % (ours)58.4
Direct bidders' share, % (ours)7.9
Primary dealers' share, % (ours)33.7
High minus median, basis points (ours)5.5
Treasury par yield curve, 5-year point, same day, %2.22
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 ratio2.362.5211 of 120 of 12
High yield2.2452.1051 of 1211 of 12
Indirect bidders' share58.465.612 of 120 of 12
Direct bidders' share7.911.512 of 120 of 12
Primary dealers' share33.722.20 of 1212 of 12
High minus median, basis points5.54.43 of 128 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 ratio2.36Last 24 auctions22 of 241 of 242.51
Bid-to-cover ratio2.36All 110 since 26 February 2009102 of 1106 of 1102.61
High yield2.245Last 24 auctions3 of 2421 of 242.058
High yield2.245Since 26 February 200934 of 11076 of 1102.036
High yield2.245All 159 since 6 February 198083 of 15976 of 1592.280
Indirect bidders' share58.4Last 24 auctions21 of 243 of 2465.0
Indirect bidders' share58.4All 110 since 26 February 200932 of 11078 of 11049.5
Direct bidders' share7.9Last 24 auctions22 of 242 of 2411.5
Direct bidders' share7.9All 110 since 26 February 200989 of 11021 of 11012.8
Primary dealers' share33.7Last 24 auctions0 of 2424 of 2423.0
Primary dealers' share33.7All 110 since 26 February 200970 of 11040 of 11037.1
High minus median, basis points5.5Last 24 auctions4 of 2419 of 244.6
High minus median, basis points5.5Since 26 February 200930 of 11078 of 1104.4
High minus median, basis points5.5All 159 since 6 February 198034 of 159123 of 1594.0

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 December 2017. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2017/R_20171227_2.pdf. Compiled by 500metrics, "7-year note auction of 27 December 2017 (reopening)", https://500metrics.com/treasury/auctions/7-year-note/2017-12-27.

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