Noncompetitive bid

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 ?
Camelot Cites Noncompetitive Bid, Unequal Access to Information Among Factors That Contributed to Unfair Process
The press may continue to focus on the fact that individual companies may have overpaid thousands and even hundreds of thousands of dollars in noncompetitive bid situations.
In the example discussed above, suppose the total noncompetitive bid is for $50 million.
A recent noncompetitive bid deal with Huawei totaled $82 million without the approval of the Council of Ministers nor the review of the Court of Accounts.
The FTC would have the court find that after behaving properly in two instances where its competitors did not so behave, Abbott changed its corporate mindset, and joined a collusive plan to submit a noncompetitive bid," wrote Judge Sporkin.
They range from $148 per ton, charged by Jihad Construction Company to handle garbage for Bekaa and Hermel, to $189, charged by Batco and Lavajet in the North and Akkar, and prices higher still for likely noncompetitive bids.
previously awarded seven leases, two through noncompetitive bids, for projects in the Atlantic Ocean, including Cape Wind in Nantucket Sound.
The ratio of government securities offered for competitive and noncompetitive bids is 70 %:30%.
The former Marsh managers are accused of colluding with insurance executives to arrange noncompetitive bids and then conveying these bids to clients under false pretenses.
MOreover, some large institutions in the New York Federal Reserve District have expressed interest in using this new electronic system to submit noncompetitive bids on behalf of customers.
To create the illusion of a competitive bidding process, Deoliveira's co-conspirators would use each other's letterhead to submit the high, noncompetitive bids.
Finally, any entity or individual may submit noncompetitive bids in an amount up to $1 million.