Noncompetitive Tender

Noncompetitive tender

Offer by an investor to purchase Treasury securities at a price equivalent to the weighted average discount rate or yield of accepted competitive bids in a Treasury auction. Noncompetitive tenders are always accepted in full.

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Noncompetitive Tender

One of two bidding processes for buying Treasury securities and some other debt securities, in which the investor agrees to purchase a certain number the securities at the average price of all competitive bids over a given time. The non-competitive tender 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 non-competitive tender is $10,000. It is also called a non-competitive bid.