US Treasury Auction Results

Common questions

What is a Treasury auction bid-to-cover ratio?

Bid-to-cover is the total dollar amount of bids received at a Treasury auction divided by the amount actually sold. A ratio of 2.5 means investors bid for two and a half times the securities on offer. It is the standard gauge of auction demand: a high bid-to-cover signals strong appetite, a low one signals a weak auction that can push yields up.

What do indirect bidders represent?

Indirect bidders are those who place their bids through a primary dealer rather than directly, a group that includes many foreign central banks and large institutions. The indirect share — indirect bids as a percentage of the amount accepted — is watched as a proxy for foreign and institutional demand for US government debt. This page shows that share for each auction.

What is the high yield at a Treasury auction?

The high yield is the highest yield (lowest price) at which the Treasury accepts competitive bids to sell the full offering — the auction's clearing yield. Every accepted bidder receives that yield. A high yield that comes in above where the security traded before the auction indicates soft demand; below it indicates strong demand.

Why do Treasury auctions matter for gold and silver?

Treasury auctions are a live read on demand for US government debt and on where long-term interest rates are heading. Weak auctions and rising yields often accompany worries about deficits and inflation — the same conditions that historically support gold and silver as stores of value. Auction demand is one of the macro gauges precious-metals investors track.