How is the value of government bonds and notes typically quoted?

The value of government bonds and notes is typically quoted as a percentage of par. This means that the price of the bond or note is expressed as a fraction of its face value, which is usually $100. For instance, if a government bond is quoted at 98, it is trading at 98% of its par value, or $98. This method of quoting allows investors to easily assess the current market value relative to the bond’s face value, facilitating comparisons across different securities.

The percentage of par quoting method is particularly useful because it standardizes the pricing regardless of the individual face values of different securities, enhancing transparency and ease of understanding when investors analyze potential investments in government bonds and notes.