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 ?
The Government Stock up to 10 % of the notified amount of the sale of each of the stock will be allotted to eligible individuals and institutions subject to a maximum limit of 1 % of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility (available on RBI website).
The Association is dedicated to building upon this effort and making sure this new requirement is effective for the next round of bidding and addressing the drastic cuts in non-competitive bidding areas that are due to take effect on January 1, 2016.
Up to 20 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the scheme for non-competitive bidding facility in the auction of government securities.
However, for non-competitive bidding, the ceiling for one investor will be linked with pre-auction target i.
Treasury securities can be obtained from brokers or bought through either competitive or non-competitive bidding at any of more 150 government auctions.
Crum said her department would probably stop using the non-competitive bidding process altogether after all of the negative publicity.
Furthermore, our relationship with LinGate provided us access to purchase the hotel in a non-competitive bidding environment, enabling us to acquire the property at below replacement cost.
Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
Up to 20 percent of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities," the statement said.
We are pleased that the court has stifled this attempt to prevent a non-competitive bidding process from taking place.
He failed to disclose a campaign contribution from Gruen Associates, a firm seeking a non-competitive bidding contract.
Our facility-related costs have been increasing due to non-competitive bidding based on the former proprietary systems as well as increasing energy costs," said William Benson, Manager of the HVAC Standards Group, New York City School Construction Authority.