Econoday Report: 7-Yr Note Auction July 29, 2010

2010 Economic Calendar

Resource Center » U.S. & Intl Recaps | Release Dates | Event Definitions | Today's Calendar

7-Yr Note Auction

Released on 7/29/2010 1:00:00 PM For 7/29/2010 1:00:00 PM

Auction Results
Bid/Cover	2.78
Coupon Rate	2.375%
Total Amount	$29.0 B
Yield Awarded	2.394%

Highlights
Today's auction of $29.0 billion offered in 7-year T-notes did not go as well as the 2-year and 5-year earlier this week. Coverage fell to 2.78 from 3.01 last month. High yield was 2.394 percent with 25.57 percent allotted at high. Of competitives, dealers took 48.76 percent; indirects, 42.25 percent; and directs, 8.99 percent.

Definition
Treasury notes are sold at regularly scheduled public auctions. The competitive bids at these auctions determine the interest rate paid on each Treasury note issue. A group of 17 securities dealers (as of June 18, 2009), known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold, resell, or trade the securities with other firms. The Treasury announces the amount, date and time of the 7-year note auction monthly. The 7-year notes are announced around the third week of the month (usually on Thursday) and then auctioned the following week. In all cases, the 7-year notes are issued (settled) on the last day of the month, unless it falls on a weekend or holiday, and then they are issued on the next business day. (Department of the Treasury) Why Investors Care

Data Source: Haver Analytics