Noncompetitive bid

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Noncompetitive bid

In a Treasury auction, bidding for a specific amount of securities at the price, whatever it may turn out to be, equal to the average price of the accepted competitive bids.

Noncompetitive Bid

One of two bidding processes for buying Treasury securities and some other debt securities, in which the investor agrees to purchase a certain number of securities at the average price of all competitive bids over a given time. The noncompetitive bid process allows smaller investors to buy Treasury securities in a market that would otherwise be dominated by wealthy institutional investors. The minimum price in a noncompetitive bid is $10,000.

noncompetitive bid

A method of purchasing U.S. Treasury bills at the weekly public auction without having to submit a price. With a noncompetitive bid, the investor agrees to purchase a given amount of securities (a minimum of $10,000 and a maximum of $500,000) at the average price set at the auction. Noncompetitive bids permit small investors to participate in the auction.

Noncompetitive bid.

Investors who can't or don't wish to meet the minimum purchase requirements for competitive bidding on Treasury bills or notes may enter a noncompetitive bid.

You can invest as little as $1,000 or as much as $5 million in each new issue through Treasury Direct. Treasury Direct is a system that allows you to buy government securities without going through a bank or a brokerage firm.

The Treasury sells T-bills, for example, to all noncompetitive buyers whose bids arrive by the weekly deadline, for a price equal to what competitive bidders pay for that week's issue.

A noncompetitive bid may also be known as a noncompetitive tender.

References in periodicals archive ?
Perciavalle and his co-conspirators took steps to create the appearance that Mount Sinai was awarding contracts based on competition, when, in fact, they submitted, or caused to be submitted, intentionally high, non-competitive bids to Mount Sinai on these contracts.
Those submitting non-competitive bids or bids that are longer than the clearing extension period will not be subject to proration.
Between August 2003 and January 2004, the conspirators submitted non-competitive bids to the U.
625 bln euros, including 375 mln in non-competitive bids.
In response to investor input, Freddie Mac increased the maximum permissible amount of non-competitive bids for auctions to $100 million and the size of the non-competitive pool to 20% of the offering amount.
3 bln euro issue, which included 300 mln euros in non-competitive bids, was priced to yield 4.
Fannie Mae conducts Dutch auctions, or single price auctions, on a weekly basis accepting both competitive and non-competitive bids through a web based auction system.
The agency said non-competitive bids of up to 30% of the auctioned amount may be submitted during the auction.
In addition, Freddie Mac will increase the maximum permissible amount of non-competitive bids in each auction to $100 million and the size of the non-competitive pool to 20% of the offering amount in response to investor input, effective with the 2-year Reference Note auction on June 8, 2001.
It said non-competitive bids of up to 30 percent of the auctioned amount may be submitted during the auction.
During the auction, non-competitive bids can be submitted up to 30 percent of the auctioned amount," PDMA said.
On Wednesdays, Fannie Mae will accept competitive and non-competitive bids for Benchmark Bills on a discount-rate basis starting at 8:30 a.