Noncompetitive bid

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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 ?
The California ISO will acquire by any means, including non-competitive bid, additional resources in an amount sufficient to maintain minimum operation reserves.
The non-competitive bids should be submitted between 10.
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 25, 2018.
The issue was 89 per cent oversubscribed and competitive bids amounted to e1/4131m and non-competitive bids to e1/458m, the finance ministry's PDMO said in a statement on its website.
0 billion euros as it will accept additional non-competitive bids of up to 30% of the auctioned amount by Aug.
An official release by the Ministry of Fiance said that both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 29, 2014.
The agency said non-competitive bids of up to 30% of the auctioned amount may be submitted during the auction.
Fannie Mae conducts Dutch auctions, or single price auctions, on a weekly basis accepting both competitive and non-competitive bids through a web based auction system.