This round’s story
Cat A vs Cat B spread widens to $5,272
The spread between Cat A and Cat B reversed sharply this round. Two weeks ago it sat at $1,446, which was the narrowest it had been in at least a year. This round it’s back out to $5,272. For context, the 12-month range on that spread runs from $1,446 all the way to $21,489, so $5,272 is still on the compressed side historically, but the direction flipped fast.
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What this could mean
The spread between Cat A and Cat B reversed sharply this round. Two weeks ago it sat at $1,446, which was the narrowest it had been in at least a year. This round it’s back out to $5,272. For context, the 12-month range on that spread runs from $1,446 all the way to $21,489, so $5,272 is still on the compressed side historically, but the direction flipped fast.
What moved it was Cat B, not Cat A. Cat A edged down 0.4% to $124,229. Cat B climbed 2.6% to $129,501. One read of this is that the last round’s near-convergence was the anomaly, and Cat B is simply correcting back toward a more typical gap. Another possibility is that Cat B demand has its own momentum right now. The bid-to-quota ratio for Cat B came in at 1.69, which reads as genuine demand pressure. Cat A’s ratio was higher at 1.84, so demand isn’t thin there either, but Cat A prices still dipped slightly.
That combination is worth sitting with. Cat A had a stronger bid-to-quota ratio than Cat B, yet its price fell. Cat B had a lower ratio, yet its price rose more. We cannot say with confidence what explains that divergence in a single round. It could be the composition of bids, the distribution of bid values, or just noise.
Or it could just be one noisy fortnight.
Cat E closed at $130,000, up 1.8% from $127,700 last round. Cat E carries no PQP cap because it isn’t tied to renewal the way Cat A and Cat B are. That means there’s no ceiling mechanism anchoring its price to a rolling average. At $130,000 it sits above both Cat A and Cat B this round, which is the more typical relationship between the three.
Cat C was the biggest mover in percentage terms, up 5.4% to $92,223, though goods vehicles and buses occupy a different buying decision entirely.
The Cat A versus Cat B spread deserves a second look for anyone budgeting across categories. It moved $3,826 in two weeks. Whether it continues widening or compresses again in the next round is worth watching.
Next round of bidding: 4 June 2026
Looking ahead
The Cat A versus Cat B spread deserves a second look for anyone budgeting across categories. It moved $3,826 in two weeks. Whether it continues widening or compresses again in the next round is worth watching.
Next round of bidding: 4 June 2026.