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 commission's order issued broad guidelines to all stakeholders including the OCAC, Petroleum Division, the Oil and Gas Regulatory Authority (Ogra) and the Hydrocarbon Development Regulatory Institute of Pakistan (HDRIP) to ensure compliance with the provisions of Competition Act, 2010 while drafting their future tenders as noncompetitive bidding process hampers competition in the market.
A group of Fairbanks businessmen, interested in participating in the oil business through the lottery-type noncompetitive bidding, pushed the state Legislature to put it into state law and to hold noncompetitive state lease sales on the North Slope.
There will also be a noncompetitive bidding option to ensure access for smaller institutions.
Potential investors in TIPS have two ways to bid for new securities: competitive bidding or noncompetitive bidding. In competitive bidding the potential investor submits a tender form indicating the par amount of securities desired (in multiples of $1,000) and the desired yield percent, stated to three decimal places (for example, 4.123%).