The API will treat each word as an individual term and return all documents that have the 3 terms in them somewhere, essentially converting your query into a "new" AND "red" AND "bike"
, as correctly outlined by omair_77.
To come full circle - if you want the API to treat the words new red bike
as one term and do not want it to return any documents with just new
and red
and bike
in it as loose terms, you need to enclose your query with quotation marks, i.e. "new red bike"
.