There is customarily a small spread between bid and asked prices of treasury notes and bonds because

Question

Quizplus · Accepted Answer

The market for treasury issues is liquid, meaning that there are many buyers and sellers, which leads to a narrow spread between the bid and asked prices. This is because there is high demand for these low-risk investment instruments, and they are highly traded in financial markets. The other options - A, B, and D - are not relevant reasons for the narrow spread.

There Is Customarily a Small Spread Between Bid and Asked