Answers » Categories » Bonds

With regard to a bond trade, what is significance of "bid to cover"?

March 9, 2011


0
1 Report

1 Answer

0 
"Bid to cover" compares the number of bids received for a certain bond in a Treasury auction to the number of bids accepted. Amounts can also be compared, but the significance is the same in both cases: they reflect the demand for a particular bond. A high bid to cover ratio shows a high demand.

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:  

Your Answer:  
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question