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 ?
8 times bid to cover ratio meant the kingdom increased the size of its issue by $2.
30x at the last auction, while the bid to cover ratio on the 91-day and 182-day instruments were 1.
As you will note, the bid to cover ratio has tipped slightly, indicating there is room to do so.
The bid to cover ratio for the three-month bills worth USD1bn that mature on 5 November 2012 was 4.
However demand was lower, with a bid to cover ratio of 1.
We have been observing that the bid to cover ratio has been declining gradually, from 5.
The order book received a commendable bid to cover ratio of 2.
In Thursday's initial auction, the bid to cover ratio was a mere 0.