The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

BID-TO-COVER Definition & Legal Meaning

Definition & Citations:

In the United States, the number of BIDS received in an auction of TREASURY BILLS, NOTES, or BONDS versus the number actually accepted. The higher the bidtocover ratio the greater the demand by investors, and the more successful the auction. A low bidtocover ratio reflects a weak auction, and may be characterized by a long TAIL (i.e., a wide differential between the average and high yields).

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.