# Bond Auction

*Markets & Instruments — Finicade finance glossary*

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.

**Also known as:** treasury auction, primary dealer auction, bid-to-cover

**Related terms:** [Treasury Bond](https://finicade.com/glossary/treasury-bond), [Sovereign Bond](https://finicade.com/glossary/sovereign-bond), [Primary vs Secondary Market](https://finicade.com/glossary/primary-and-secondary-markets), [Yield Curve](https://finicade.com/glossary/yield-curve), [Government Debt](https://finicade.com/glossary/government-debt)

Source: https://finicade.com/glossary/bond-auction