tender issue

tender issue

an issue of TREASURY BILLS by the Bank of England in response to invited TENDERS from DISCOUNT HOUSES and overseas central banks. Each discount house tenders for a given quantity of bills, and their combined tender usually exceeds the quantity of bills on offer; the Bank of England then allots the bills to the highest bidders. This permits the Bank of England to borrow money on behalf of the government at a competitive interest rate. COMMERCIAL BANKS do not tender directly for Treasury bills but instead purchase their requirements in the DISCOUNT MARKET. Contrast TAP ISSUE.
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Tender Issue Date & Time (mm/dd/yyyy hh:mm:ss): 10/6/2014 10:00:00 AM