What is the bid-to-cover ratio?

Drafted with AI assistance from official sources; checked against the sources listed below.

The bid-to-cover ratio is the amount bid at a Treasury auction divided by the amount accepted. It says how many dollars of bids came in for each dollar Treasury sold.

How it is computed

Treasury divides the total tendered by the total accepted, both without the Federal Reserve's SOMA add-on, which is not bid for. Competitive and noncompetitive bids both count. 500metrics shows the ratio as Treasury publishes it, to two decimals.

How to compare it

A ratio says the most next to earlier auctions of the same term. Bill auctions usually draw higher ratios than long bonds, so a ratio that is high for a bond can be low for a bill. Each term page on 500metrics places the latest ratio among that term's earlier auctions.

What it does not tell you

• Who bid. The split between indirect bidders, direct bidders and primary dealers is a separate measure.
• At what yields the bids came in. A high ratio with bids far above the high yield adds little; the high and median yields show how close the bids were.