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Treasury auctions · 7-Year Note

7-year note auction of 26 January 2023 (new issue)

The 7-year note sold $35 billion at a high yield of 3.517% on , with a bid-to-cover ratio of 2.69.

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 2020 to 26 Jan 2023
High yield at each 7-year note auction, 28 Jan 2021 to 26 Jan 2023

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 2020 to 26 Jan 2023
Bid-to-cover ratio at each 7-year note auction, 28 Jan 2021 to 26 Jan 2023

Who bought the 7-year note of 26 Jan 2023

Shares of the competitive bids accepted

  • Indirect bidders 77.1%
  • Direct bidders 16.8%
  • Primary dealers 6.1%
This auction, 26 Jan 2023
  • Indirect bidders 68.1%
  • Direct bidders 16.2%
  • Primary dealers 15.8%
The 7-year note auction before, 29 Dec 2022

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 bidders77.1%
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
3.5172.69
3.9212.45
3.8902.33
4.0272.43
3.8982.57
3.1302.65
2.7302.60
3.2802.48
2.7772.69
2.9082.41
2.4992.44
1.9052.36
1.7692.36
1.5332.50
1.4802.21
1.5882.42
1.4612.25
1.3322.24
1.1552.34
1.0502.23
1.2642.36
1.2852.41
1.3062.31
1.3002.23
1.1952.04
0.7542.30
0.6622.31
0.6532.37
0.6002.24
0.4622.42
0.5192.47
0.4462.45
0.5112.49
0.5532.55
0.5252.56
0.6802.76

Observed .

Right now

The high yield was 3.517% on 26 January 2023, down from 3.921% at the auction before.

The primary dealers' share of 6.1% was the lowest of all 177 earlier 7-year note auctions we hold.

Higher than 173 of the 177 since 26 February 2009

Its own history

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

The bid-to-cover ratio was higher than 23 of them.

See every measure against earlier auctions

Who bought

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

  • Indirect bidders 77.1%
  • Direct bidders 16.8%
  • Primary dealers 6.1%

Size

Treasury sold $35 billion of the $35 billion offered.

Bids received came to $94.174 billion; the bid-to-cover ratio was 2.69.

Its bid-to-cover of 2.69 compares with the 24 auctions before it: lowest 2.04 on , highest 2.69 on ; 100.0% of the way from the low to the high.

2.69

Low 2.04 Midpoint 2.365 High 2.69

The security7-Year, new issue

Coupon
3.500%
Announced
Issued
Matures

It adds to the debt that matures in January 2030.

Understanding this result

Where it stands today

The high yield was 3.517% at this 7-year note auction, the median yield 3.457% and a bid-to-cover ratio of 2.69.

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$35,000,000,000
Bids received$94,174,359,400
Sold$35,000,009,400
Competitive bids accepted$34,962,200,000
Non-competitive bids accepted$37,809,400
Federal Reserve (SOMA) add-on$0
Foreign and international (FIMA) non-competitive$0
High yield, %3.517
Median rate, %3.457
Low rate, %3.410
Interest rate (coupon), %3.500
Bids at the high rate filled, %77.50
Bid-to-cover ratio2.69
Indirect bidders accepted$26,944,650,000
Direct bidders accepted$5,879,300,000
Primary dealers accepted$2,138,250,000
Indirect bidders' share, % (ours)77.1
Direct bidders' share, % (ours)16.8
Primary dealers' share, % (ours)6.1
High minus median, basis points (ours)6.0
Treasury par yield curve, 7-year point, same day, %3.54
High yield minus that point, basis points (ours)-2.3
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 ratio2.692.440 of 1211 of 12
High yield3.5173.0194 of 128 of 12
Indirect bidders' share77.163.51 of 1211 of 12
Direct bidders' share16.820.18 of 124 of 12
Primary dealers' share6.113.512 of 120 of 12
High minus median, basis points6.06.810 of 122 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 ratio2.69Last 24 auctions0 of 2423 of 242.38
Bid-to-cover ratio2.69All 177 since 26 February 200938 of 177138 of 1772.54
High yield3.517Last 24 auctions4 of 2420 of 241.678
High yield3.517Since 26 February 20094 of 177173 of 1772.026
High yield3.517All 226 since 6 February 198053 of 226173 of 2262.240
Indirect bidders' share77.1Last 24 auctions1 of 2423 of 2461.9
Indirect bidders' share77.1All 177 since 26 February 20093 of 177174 of 17758.0
Direct bidders' share16.8Last 24 auctions19 of 245 of 2420.1
Direct bidders' share16.8All 177 since 26 February 200960 of 177117 of 17714.5
Primary dealers' share6.1Last 24 auctions24 of 240 of 2417.0
Primary dealers' share6.1All 177 since 26 February 2009177 of 1770 of 17730.2
High minus median, basis points6.0Last 24 auctions16 of 248 of 246.5
High minus median, basis points6.0Since 26 February 200938 of 177135 of 1774.6
High minus median, basis points6.0All 226 since 6 February 198040 of 226180 of 2264.3

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 26 January 2023. Results file: https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/R_20230126_3.pdf. Compiled by 500metrics, "7-year note auction of 26 January 2023 (new issue)", https://500metrics.com/treasury/auctions/7-year-note/2023-01-26.

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