SIE: 2.11.3.1. T-Notes And Bond Quotations

2.11.3.1.  T-Notes and Bond Quotations

Like corporate bonds, Treasury notes and bonds are quoted in the secondary market on a price basis where one point equals one percent of par. Unlike corporate bonds, which are quoted in eighths of a percent, government securities are split into units of 32nds. A price quote of 98-11 refers to a price of 98 11/32% of par value, or 98.34375% of par. If the Treasury bond had a par value of $1,000, then the bond would sell for $983.44.

A price of 103-08 refers to a price of 103 8/32% of par, or 103.25% of par. If the Treasury bond had a par value of $1,000, it would sell for $1,032.50.