A new bus-invert coding circuit, called Two-bit Bus-Invert Coding (TBIC) is presented. TBIC partitions a bus into a set of two-bit sub-buses, and applies the bus-invert (BI) algorithm to each sub-bus. Unlike ordinary BI circuits using invert-lines, TBIC does not use an invert-line, so that it sends coding information through a bus-line. To transmit 3-bit information with 2 bus-lines, TBIC allows one bus-line to have a mid-level state, called M-state. TBIC increases the performance of BI algorithm, by suppressing the generation of overhead transitions. TBIC reduces bus transitions by about 45.7%, which is 83% greater than the maximum achievable performance of ordinary BI with invert-lines.