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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The Government Stock up to 10% of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions subject to a maximum limit of 1% of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility (available on RBI website).
Up to five percent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities.
Summary: New Delhi [India], Apr 25 (ANI): National Stock Exchange of India (NSE) has announced the launch of its "e - Gsec" platform for facilitating the non-competitive bidding in Government of India Dated Securities (G-Sec) and Treasury Bills (T-Bills).
New Delhi [India], Apr 25 ( ANI ): National Stock Exchange of India (NSE) has announced the launch of its "e - Gsec" platform for facilitating the non-competitive bidding in Government of India Dated Securities (G-Sec) and Treasury Bills (T-Bills).
The non-competitive bidding facility was introduced by the Reserve Bank of India (RBI) to encourage retail participation in the primary market for Government Securities.
The RBI conducts auction for G-Sec and T-Bills on a weekly basis where five percent of the notified amount is allotted for eligible investors under the scheme for non-competitive bidding facility.
Up to 20 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the scheme for non-competitive bidding facility in the auction of government securities.