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Treasury auctions · 7-Year Note

7-year note auction of 27 February 2020 (new issue)

The 7-year note sold $36.836 billion at a high yield of 1.247% 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, 28 Sep 2017 to 27 Feb 2020
High yield at each 7-year note auction, 28 Mar 2018 to 27 Feb 2020

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, 28 Sep 2017 to 27 Feb 2020
Bid-to-cover ratio at each 7-year note auction, 28 Mar 2018 to 27 Feb 2020

Who bought the 7-year note of 27 Feb 2020

Shares of the competitive bids accepted

  • Indirect bidders 63.0%
  • Direct bidders 13.1%
  • Primary dealers 23.9%
This auction, 27 Feb 2020
  • Indirect bidders 58.0%
  • Direct bidders 17.2%
  • Primary dealers 24.7%
The 7-year note auction before, 28 Jan 2020

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 bidders63.0%
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
1.2472.49
1.5702.37
1.8352.47
1.7192.44
1.6572.46
1.6332.49
1.4892.16
1.9672.27
1.8892.44
2.1442.30
2.0652.38
2.4262.49
2.3552.51
2.2812.54
2.1722.35
2.2612.60
2.5382.60
2.6252.54
2.6802.46
2.9742.55
3.0742.39
3.0342.45
2.8442.65
2.9302.49
2.8092.53
2.9302.62
2.9522.56
2.7202.34
2.8392.49
2.5652.73
2.3702.55
2.2452.36
2.2302.36
2.0662.46
2.2802.39
2.1302.70

Observed .

Right now

The high yield of 1.247% on 27 February 2020 was the lowest for a 7-year note since 25 April 2013.

Higher than 8 of the 141 since 26 February 2009

Its own history

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

The high minus median was higher than 22 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 63.0%
  • Direct bidders 13.1%
  • Primary dealers 23.9%

Size

Treasury sold $36.836 billion of the $32 billion offered.

Bids received came to $84.413 billion; the bid-to-cover ratio was 2.49.

Its bid-to-cover of 2.49 compares with the 24 auctions before it: lowest 2.16 on , highest 2.65 on ; 67.3% of the way from the low to the high.

2.49

Low 2.16 Midpoint 2.405 High 2.65

The security7-Year, new issue

Coupon
1.125%
Announced
Issued
Matures

It adds to the debt that matures in February 2027.

Understanding this result

Where it stands today

The high yield was 1.247% at this 7-year note auction, the median yield 1.189% 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$32,000,000,000
Bids received$84,413,393,300
Sold$36,836,326,900
Competitive bids accepted$31,991,333,600
Non-competitive bids accepted$8,672,500
Federal Reserve (SOMA) add-on$4,836,320,800
Foreign and international (FIMA) non-competitive$0
High yield, %1.247
Median rate, %1.189
Low rate, %0.880
Interest rate (coupon), %1.125
Bids at the high rate filled, %6.18
Bid-to-cover ratio2.49
Indirect bidders accepted$20,142,838,600
Direct bidders accepted$4,191,500,000
Primary dealers accepted$7,656,995,000
Indirect bidders' share, % (ours)63.0
Direct bidders' share, % (ours)13.1
Primary dealers' share, % (ours)23.9
High minus median, basis points (ours)5.8
Treasury par yield curve, 7-year point, same day, %1.22
High yield minus that point, basis points (ours)2.7
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 ratio2.492.441 of 129 of 12
High yield1.2471.86212 of 120 of 12
Indirect bidders' share63.058.83 of 129 of 12
Direct bidders' share13.115.910 of 122 of 12
Primary dealers' share23.922.46 of 126 of 12
High minus median, basis points5.84.61 of 1211 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 auctions8 of 2413 of 242.46
Bid-to-cover ratio2.49All 141 since 26 February 200992 of 14142 of 1412.56
High yield1.247Last 24 auctions24 of 240 of 242.271
High yield1.247Since 26 February 2009133 of 1418 of 1412.105
High yield1.247All 190 since 6 February 1980182 of 1908 of 1902.282
Indirect bidders' share63.0Last 24 auctions7 of 2417 of 2459.4
Indirect bidders' share63.0All 141 since 26 February 200929 of 141112 of 14153.5
Direct bidders' share13.1Last 24 auctions19 of 245 of 2415.9
Direct bidders' share13.1All 141 since 26 February 200972 of 14169 of 14113.2
Primary dealers' share23.9Last 24 auctions10 of 2414 of 2422.5
Primary dealers' share23.9All 141 since 26 February 2009108 of 14133 of 14133.8
High minus median, basis points5.8Last 24 auctions2 of 2422 of 244.4
High minus median, basis points5.8Since 26 February 200925 of 141113 of 1414.4
High minus median, basis points5.8All 190 since 6 February 198029 of 190158 of 1904.0

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 February 2020. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20200227_3.pdf. Compiled by 500metrics, "7-year note auction of 27 February 2020 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2020-02-27.

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