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 ?
The bid-to-cover ratios have remained broadly unchanged, indicating there could be room for further adjustments in the auction sizes for future auctions,' Tetangco said.
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 for the bills that mature on 16 July, worth USD1bn, sold by the company was 4.
The bid-to-cover ratio, which measures demand in an auction, was 0.