YieldDocketYieldDocket
Columbus, Ohio - Highsmith 25

Reference

Treasury and savings glossary

The words on our auction pages and rate tables, defined in plain language.

Photo: Carol M. Highsmith / Wikimedia Commons (public domain)

The Friday Docket

This week's Treasury results and national rates, free every Friday.

One short email a week. Unsubscribe anytime.

Plain-language definitions of the terms that appear on YieldDocket auction pages, rate tables and the Friday Docket. Each definition stays close to official Treasury and FDIC wording.

The terms

Bid-to-cover
Total bids at a Treasury auction divided by the offering amount. Reported on each TreasuryDirect results statement.
Bond-equivalent yield
Another name for a T-bill's high investment rate: the return annualized on a 365-day basis so it can be compared with coupon securities. See how to read auction results.
Cash management bill (CMB)
A short-term Treasury bill with an irregular term, used to cover a temporary cash need. See the CMB results page.
Competitive bid
A bid that states the yield (or discount rate) the bidder will accept. Competitive bids help set the high yield. Individuals more often use a non-competitive bid, which accepts the high yield.
Coupon / interest rate
The stated annual interest rate on a note or bond, paid semiannually. Set at a new-issue auction and unchanged on later reopenings.
CUSIP
The nine-character identifier for a specific security. A reopening uses the same CUSIP as the original issue.
Discount rate (bills)
The discount from face value on a Treasury bill, expressed as an annual rate on a 360-day basis. It is not the same as the investment rate.
FDIC national rate
A deposit-weighted average rate across insured institutions and credit unions, published by the FDIC for savings, money market deposits, interest checking and CD terms. It is an average, not an offer from any bank. See national CD and savings rates.
FDIC rate cap
A cap derived from the national rate, applied to banks that are less than well capitalized. It is not an insurance limit. Insurance is explained on FDIC deposit insurance.
FRN
A Treasury floating rate note. The coupon resets periodically from a reference bill yield plus a spread set at auction. See Treasury FRNs explained.
High yield / stop-out
The yield at which a note or bond auction stops. Competitive bids at or below this yield are accepted under the auction rules Treasury publishes.
Investment rate (bills)
The bond-equivalent yield on a bill, on a 365-day basis. This is the headline bill rate on YieldDocket term pages.
Non-competitive bid
A bid that accepts the high yield (or high discount rate) set by the auction, up to a size limit Treasury sets for that auction. Common for individual purchases at TreasuryDirect.
Offering amount
The amount of a security Treasury offered at that auction. It is not the same as the amount of bids received.
Ownership category
How the FDIC groups accounts (for example single, joint, or certain retirement accounts) when it applies the $250,000 standard limit at one bank.
Reopening
A new auction of a security already outstanding, same CUSIP and maturity. Explained on what a Treasury reopening is.
Secondary market
The over-the-counter market where already-issued Treasuries trade until they mature. Individuals reach it through a brokerage. See the Treasury secondary market.
Tail
The gap between the when-issued yield just before the auction and the high yield at the auction, in basis points. YieldDocket does not estimate a tail when official when-issued quotes are not in our feed.
TIPS
Treasury Inflation-Protected Securities. Principal adjusts with CPI; the coupon is paid on the adjusted principal. See TIPS explained.
TreasuryDirect
Treasury's retail system for acquiring and holding marketable securities and savings bonds to maturity. It does not trade on the secondary market. See TreasuryDirect vs a brokerage.
When-issued
Trading in a security after it is announced and before it is issued. Official when-issued quotes are not part of the YieldDocket auction feed.

Research tools

To follow yields, funds and your own holdings in one place, Stock Rover offers research and portfolio tools.

Affiliate disclosure. The Stock Rover link below is an affiliate link. YieldDocket may earn a commission if you sign up, at no extra cost to you. It never changes the data we publish. How we get paid. Educational data, not investment advice.

Compare Stock Rover plans (affiliate link)

Frequently asked questions

What is bid-to-cover?

The total amount bid at a Treasury auction divided by the amount Treasury offered. It is a measure of demand at that auction.

What is a reopening?

An auction of an additional amount of a security already outstanding, under the same CUSIP, coupon and maturity. The yield is set at the new auction.

Is T-bill interest exempt from state income tax?

Interest on Treasury bills, notes and bonds is federally taxable and exempt from state and local income tax. CD and savings interest is taxable at the state level as well.

Updated · Educational, not investment advice.