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.

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.
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THE shambles that is the proposed new hospital at Wynyard goes on with a new planning application, but with major fault lines of bed numbers, building costs, future interest rises, noncompetitive tender negotiations over delays and a location whose main access from the A19 is a road that suffers severe delays daily.
On the demand side, growth in M2 appears to have been held down early in the year by the public's concerns about depository institutions; purchases of Treasury securities through noncompetitive tenders were especially heavy in January.
Evidence of the rising opportunity cost of holding M2 can be seen in the unusually heavy volume of noncompetitive tenders in Treasury bill and note auctions, which suggest a shift out of M2 balances.
Households responded to the relatively low returns on deposits by looking elsewhere, as suggested by heavy flows into stock and bond mutual funds and sizable noncompetitive tenders at Treasury auctions.
Noncompetitive tenders for Treasury bills and notes, a rough indicator of the extent to which individual investors are increasing their holdings of Treasury securities, surged early in the year and remained strong through March.
Rates on Treasury bills moved up appreciably less, at a time when there was no overall growth in the size of the weekly auctions and the supply available for competitive awards was reduced by substantial retail demand through noncompetitive tenders.