The Bid-To-Cover Ratios Will Be Closely Scrutinized
In his podcast addressing the markets today, Louis Navellier offered the following commentary. Scrutinizing Bid-To-CoverThe U.S. Treasury is auctioning $1.03 trillion in Treasuries securities this week, so the “bid-to-cover” ratios will be closely scrutinized. A bid-to-cover ratio below 2.2 is problematic since it typically causes interest rates to rise. On the other hand, a bid-to-cover ratio above 2.4 is great, since interest rates are stable. However, during the last big Treasury auction several weeks ago, the 20-year Treasury bond had an impressive bid-to-cover ratio of 2.87 to 1, so inter...