Treasury bill auction(redirected from Treasury Bill Auctions)
Treasury Bill Auction
A weekly Dutch auction held for the sale of 13-week and 26-week U.S. Treasury bills, or a monthly auction for 52-week bills. In a Treasury bill auction, the bills are offered at a relatively high price, which is gradually lowered until a potential buyer indicates it wishes to buy at that price. The interest rates on these Treasury bills are used as benchmarks for short-term interest rates. It should be noted that the Treasury also sets aside securities for those who do not enter a , but have indicated they are willing to pay whatever the winning bid happens to be.
Treasury bill auction
The weekly Monday auction for 13-week and 26-week Treasury bills and the monthly auction for 52-week Treasury bills. The auctions are conducted on a competitive-bid basis by the Federal Reserve. Securities are also set aside for investors who do not wish to enter a specific bid but who will purchase the securities at the average price paid by competitive bidders. See also Form PD 4632.