bid-to-cover ratio

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 ?
Therefore, we introduce some variables that may influence the bidding behavior such as bid-to-cover ratio, liquidity uncertainty, interest rate expectations, and banks' heterogeneity in terms of liquidity position.
Investors were very supportive of the pricing initiative as the order book recorded bid-to-cover ratio of more than 2 times and competitively priced with weighted average spread of 37 basis points and 50 basis points above the corresponding Government Investment Issues (GII) and Malaysian Government Securities (MGS) respectively," Chung added.
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.
33 times the amount offered, down from the previous sale's bid-to-cover ratio of 3.
5 times the offer, down from the bid-to-cover ratio of 1.
The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.
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.
The bid-to-cover ratio changes are beginning to reflect seasonality given these tenors would mature close to the holidays.