Treasury Price Quoting in 32nds

Most bonds and stocks are quoted in decimals, $99.75, but US Treasury notes and bonds are still quoted in points and fractions of a 32nd of a point, a convention inherited from when prices were handwritten and 32nds were the finest fraction a trader needed. A price like "99-16" means 99 and 16/32 points, i.e. $99.50 per $100 of face value. A "+" after the fraction adds another half-32nd (a 64th): "99-16+" is 99 and 16.5/32, or $99.515625. Reading these quotes fast, knowing on sight that 16/32 is exactly a half point and 8/32 is a quarter point, is a basic fluency test on a rates desk.

For example, a quote of "101-08" converts to 101 + 8/32 = 101.25, so a $1 million face position is worth $1,012,500. The same bond quoted electronically for a retail system would simply show 101.25.