How are T-notes and T-bonds quoted?

T-notes (Treasury notes) and T-bonds (Treasury bonds) are quoted as a percentage of par in 32nds of a point. This means that the price of the bond is expressed in terms of a percentage of its face value, with each point representing a full percentage and subdivided into 32 parts. For example, if a T-note is quoted at 100:16, it means the price is 100 and 16/32 percent of its face value, which translates to 100.5 percent.

This method of quoting is specific to the U.S. Treasury securities market and allows for high precision in pricing. Investors and traders use this format to quickly assess the value of T-notes and T-bonds relative to their face value, facilitating transactions based on current market conditions. Understanding this quoting system is essential for anyone involved in trading or investing in U.S. government securities.