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 ?
A non-competitive bids fixed-rate auction of an unspecified amount of the government bonds is also due to take place later on Wednesday.
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 August 27, 2019 (Tuesday).
During the auction, non-competitive bids may account for up to 20 percent of the bond issue.
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the RBI Core Banking Solution (E-Kuber) system on November 16.
The issue, with a subscription rate of 170 per cent, comprised of e1/4107m in competitive bids and e1/463m in non-competitive bids, the office said.
The total amount issued, including non-competitive bids, stood at Rs1,334.16 billion.
The circular said only PDs of government securities (MTBs and PIBs) will be eligible to participate in the competitive auctions and submit non-competitive bids on behalf of eligible investors.
The non-competitive bids should be submitted between 10.30 a.m.
The debt agency raised of 4.0625 billion euros, including 937.5 million in non-competitive bids. Athens expects to raise a total of 5.0 billion euros as it will accept additional non-competitive bids of up to 30% of the auctioned amount by Aug.
RIGA, Aug 28 (LETA) - A non-competitive bids fixed-price auction on Wednesday sold EUR 12.4 million worth of the five-year government bonds, the Nasdaq Riga stock exchange reported.
The issue was to 48 per cent oversubscribed with competitive bids amounting at e1/4110m and non-competitive bids at e1/438m, the PDMO, a branch of the Ministry of Finance said on its website.
The sale included 187.5 mln euros in non-competitive bids.