| 7-Yr Note Announcement
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| Description of Offering |
| Offering Amount | $28.0 B | | CUSIP Number | 9128283V0 | | Auction Date | January 25, 2018 | | Issue [Settlement] | January 31, 2018 | | Maturity Date | January 31, 2025 | | Min Bid Amount | $100 | | Noncompetitive Bids | 12:00 Noon ET | | Competitive Bids | 1:00 p.m. ET |
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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 securities dealers, known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the notes, resell the notes to their clients or trade them with other securities firms. Typically, the New York Fed approves about 20 securities firms to be primary dealers but that number dropped sharply during the 2008 financial crisis as some were merged into other firms or went bankrupt. The Fed has been rebuilding that number regularly and the latest list can be found here. 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
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