Bid-to-Cover Ratio
The bid-to-cover ratio divides the par amount bid at a Treasury auction by the par amount awarded, providing one measure of auction participation.
Compare U.S. Treasury bills, notes, and bonds by maturity, cash flows, auction evidence, pricing, and interest-rate risk.
U.S. Treasury marketable securities are federal debt instruments that can be transferred or sold before maturity. Treasury bills provide short maturities without coupons, while Treasury notes and Treasury bonds pay fixed interest every six months.
The labels are not interchangeable. Maturity and cash-flow timing affect price sensitivity, reinvestment risk, inflation exposure, and suitability for a particular funding date.
| Security | Current Treasury terms | Payment pattern | Typical analytical use |
|---|---|---|---|
| Treasury bill | 4, 6, 8, 13, 17, 26, or 52 weeks | Discount or par purchase; face value at maturity | Short-term rates and cash horizons |
| Treasury note | 2, 3, 5, 7, or 10 years | Fixed interest every six months; face value at maturity | Intermediate yields and benchmark rates |
| Treasury bond | 20 or 30 years | Fixed interest every six months; face value at maturity | Long rates, duration, and liability matching |
| Floating Rate Note | 2 years | Quarterly interest that resets from a bill-based index plus spread | Short duration with variable income |
| TIPS | 5, 10, or 30 years | Inflation-adjusted principal and semiannual interest | Market-based inflation exposure |
For the broader classification, see Treasury Securities.
The bid-to-cover ratio compares par amount bid with par amount awarded. It is one auction statistic, not a complete demand score. Accepted yield, pricing relative to the when-issued market, offering size, allotment, and bidder awards provide necessary context.
| Field | What it describes | What it does not establish alone |
|---|---|---|
| Coupon rate | Interest paid on face value | Investor return at a premium or discount |
| Clean price | Quoted price excluding accrued interest | Total settlement cash |
| Accrued interest | Coupon interest accumulated since the prior reference date | Gain or loss from price movement |
| Yield to maturity | Cash-flow return under stated assumptions | Realized return if sold early or coupons reinvest differently |
| Bank discount rate | Bill quote using face value and a 360-day year | Effective annual return on invested cash |
| Bid-to-cover ratio | Tenders relative to awards | Whether auction pricing was attractive |
The newest security in a maturity sector is generally called on-the-run. Older issues are off-the-run Treasuries. Their yields can differ because trading liquidity, financing demand, coupon, duration, and remaining maturity are not identical. A yield difference is therefore not automatically a credit-risk difference.
TreasuryDirect’s marketable securities overview lists current security types, terms, payment structures, marketability, and the distinction from savings bonds. Auction schedules and product details can change, so confirm them with TreasuryDirect before relying on a past pattern.
This section is educational. It explains instrument structure and evidence; it does not recommend a security, maturity, bid, account, or trading strategy.
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The bid-to-cover ratio divides the par amount bid at a Treasury auction by the par amount awarded, providing one measure of auction participation.
Off-the-run Treasuries are seasoned U.S. Treasury issues that are no longer the newest benchmark securities in their maturity sectors.
A Treasury bill is short-term U.S. government debt sold at a discount or at par, with face value paid at maturity.
A Treasury bond is 20- or 30-year marketable U.S. government debt with a fixed rate and semiannual interest payments.
A Treasury note is 2- to 10-year marketable U.S. government debt with a fixed rate and semiannual interest payments.
Treasury securities are marketable U.S. government obligations issued as bills, notes, bonds, TIPS, and floating-rate notes.