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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Copyright © 2003-2025 Farlex, Inc
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.