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Treasury auctions · 7-Year Note

7-year note auction of 22 February 2018 (new issue)

The 7-year note sold $36.07 billion at a high yield of 2.839% 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, 25 Jun 2015 to 22 Feb 2018
High yield at each 7-year note auction, 26 Feb 2016 to 22 Feb 2018

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 Jun 2015 to 22 Feb 2018
Bid-to-cover ratio at each 7-year note auction, 26 Feb 2016 to 22 Feb 2018

Who bought the 7-year note of 22 Feb 2018

Shares of the competitive bids accepted

  • Indirect bidders 62.2%
  • Direct bidders 15.6%
  • Primary dealers 22.1%
This auction, 22 Feb 2018
  • Indirect bidders 78.1%
  • Direct bidders 10.2%
  • Primary dealers 11.7%
The 7-year note auction before, 25 Jan 2018

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 bidders62.2%
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
2.8392.49
2.5652.73
2.3702.55
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

Observed .

Right now

The high yield of 2.839% on 22 February 2018 was the highest for a 7-year note since 30 March 2011.

Higher than 100 of the 113 since 26 February 2009

Its own history

Against the previous 24 7-year note auctions, the high yield was higher than all 24.

The direct bidders' share was higher than 19 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 62.2%
  • Direct bidders 15.6%
  • Primary dealers 22.1%

Size

Treasury sold $36.07 billion of the $29 billion offered.

Bids received came to $79.215 billion; the bid-to-cover ratio was 2.49.

Its bid-to-cover of 2.49 compares with the 24 auctions before it: lowest 2.36 on , highest 2.85 on ; 26.5% of the way from the low to the high.

2.49

Low 2.36 Midpoint 2.605 High 2.85

The security7-Year, new issue

Coupon
2.750%
Announced
Issued
Matures

It adds to the debt that matures in February 2025.

Understanding this result

Where it stands today

The high yield was 2.839% at this 7-year note auction, the median yield 2.790% 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$29,000,000,000
Bids received$79,215,135,200
Sold$36,070,110,200
Competitive bids accepted$28,980,465,000
Non-competitive bids accepted$19,592,300
Federal Reserve (SOMA) add-on$7,070,052,900
Foreign and international (FIMA) non-competitive$0
High yield, %2.839
Median rate, %2.790
Low rate, %2.720
Interest rate (coupon), %2.750
Bids at the high rate filled, %94.15
Bid-to-cover ratio2.49
Indirect bidders accepted$18,039,165,000
Direct bidders accepted$4,528,000,000
Primary dealers accepted$6,413,300,000
Indirect bidders' share, % (ours)62.2
Direct bidders' share, % (ours)15.6
Primary dealers' share, % (ours)22.1
High minus median, basis points (ours)4.9
Treasury par yield curve, 7-year point, same day, %2.84
High yield minus that point, basis points (ours)-0.1
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 ratio2.492.506 of 126 of 12
High yield2.8392.1280 of 1212 of 12
Indirect bidders' share62.265.68 of 124 of 12
Direct bidders' share15.612.43 of 129 of 12
Primary dealers' share22.122.26 of 126 of 12
High minus median, basis points4.94.45 of 127 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 auctions13 of 249 of 242.52
Bid-to-cover ratio2.49All 113 since 26 February 200982 of 11328 of 1132.61
High yield2.839Last 24 auctions0 of 2424 of 242.105
High yield2.839Since 26 February 200913 of 113100 of 1132.056
High yield2.839All 162 since 6 February 198062 of 162100 of 1622.280
Indirect bidders' share62.2Last 24 auctions16 of 248 of 2465.0
Indirect bidders' share62.2All 113 since 26 February 200924 of 11389 of 11349.9
Direct bidders' share15.6Last 24 auctions5 of 2419 of 2411.4
Direct bidders' share15.6All 113 since 26 February 200934 of 11379 of 11312.7
Primary dealers' share22.1Last 24 auctions13 of 2411 of 2423.0
Primary dealers' share22.1All 113 since 26 February 2009100 of 11313 of 11337.1
High minus median, basis points4.9Last 24 auctions9 of 2415 of 244.6
High minus median, basis points4.9Since 26 February 200940 of 11373 of 1134.4
High minus median, basis points4.9All 162 since 6 February 198045 of 162117 of 1624.0

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 22 February 2018. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180222_1.pdf. Compiled by 500metrics, "7-year note auction of 22 February 2018 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2018-02-22.

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