Bond Auction
Also called: treasury auction, primary dealer auction, bid-to-cover
A bond auction is how governments actually sell new debt, usually to primary dealers who bid competitively. The two numbers markets watch are the bid-to-cover ratio, which measures demand against the amount offered, and the tail — the gap between the average and highest accepted yield. A weak auction with a long tail signals fading appetite for a government's debt and can move yields across the whole curve within minutes.
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