bid-to-cover ratio

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Bid-to-cover ratio

The ratio of the number of bids received in a Treasury security auction compared to the number of accepted bids.

Bid-to-Cover Ratio

In the auction of U.S. Treasury securities, the ratio of the bids received in the auction to the number of bids actually accepted. The bid-to-cover ratio is an indicator (though not the only one) of relative demand for Treasury securities. A bid-to-cover ratio of over 2.0 indicates a successful auction with competitive bidding, while a lower ratio indicates the opposite.

bid-to-cover ratio

At an auction of Treasury securities, the dollar amount of money being bid compared with the dollar amount of securities being auctioned. A high ratio indicates strong demand and is likely to strengthen the market prices of other fixed-income securities.
References in periodicals archive ?
Before the Federal Reserve began its unprecedented stimulus in 2008, the bid-to-cover ratio never topped 2.
The bid-to-cover ratio for the benchmark bond was lower at 3.
5 times the offer, down from the bid-to-cover ratio of 1.
Demand was lower than the previous auction, with the bid-to-cover ratio at 2.
70 trillion yen worth, with the bid-to-cover ratio standing at 2.
The so-called bid-to-cover ratio is believed to be a record high, although the ministry has no comparable data, according to financial market participants.
It determined that the rules often publish absurd and misleading bid-to-cover ratios, such as 4,000 to 1.
The subscription totaled BGN 115,25 million, the bid-to-cover ratio being 2,31.
The bid-to-cover ratio came in at a relatively high 3.
The bid-to-cover ratio, which measures demand in an auction, was 0.
Yesterday, the central bank issued 5B in 3-day repo to ease tension in the money market, but demand was far stronger than supply and the issuance saw a bid-to-cover ratio of 4.
70 trillion yen worth, driving the bid-to-cover ratio to 2.