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 ?
A flatter curve hasn't dented investor appetite in AAA-rated Australia, which recently drew a bid-to-cover ratio of 3.69 for May 2030 notes.
We have received more than thrice bid-to-cover ratio.
'We saw demand at the long end considering that we had a decent noncompetitive bid, and the bid-to-cover ratio is 1.4 times, so it's a good turnout actually,' Sta.
A total of 1,040 billion won of orders (a bid-to-cover ratio of 208.0%) were placed with a range of bids from 2.200 percent to 2.620 percent.
Strong demand for the five-year security set the coupon at 4.625% with total tenders reaching P191.8 billion for a bid-to-cover ratio of 6.39.
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.
The participants showed high interest in the auction and the subscription totaled BGN 197.50 million, the bid-to-cover ratio being 1.98.
"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 2.65.
The bid-to-cover ratio for the benchmark bond was lower at 3.5x at the auction and 2x at the non-competitive sales, respectively.
The sale drew bids of 3.33 times the amount offered, down from the previous sale's bid-to-cover ratio of 3.52 times, and the tail between the average and lowest accepted prices was 0.16, matching that at last month's offering.
Demand was 1.5 times the offer, down from the bid-to-cover ratio of 1.67 at the October 2012 sale of the similar bond.