Noncompetitive bid

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 ?
'We saw demand at the long end considering that we had a decent noncompetitive bid, and the bid-to-cover ratio is 1.4 times, so it's a good turnout actually,' Sta.
The press may continue to focus on the fact that individual companies may have overpaid thousands and even hundreds of thousands of dollars in noncompetitive bid situations.
In the example discussed above, suppose the total noncompetitive bid is for $50 million.
Competitive bidders, the bulk of whom are the thirty-nine dealers designated as primary dealers by the Federal Reserve Bank of New York, submit sealed bids specifying the dollar amounts of the security the bidder is willing to buy at each yield.(2) Noncompetitive bidders submit a quantity bid, up to $1 million for bills and $5 million for notes and bonds, but do not specify any yield; the total amount of noncompetitive bids is subtracted from the dollar amount of the security to be auctioned, and what remains is available for competitive bidding.(3)
A recent noncompetitive bid deal with Huawei totaled $82 million without the approval of the Council of Ministers nor the review of the Court of Accounts.
They range from $148 per ton, charged by Jihad Construction Company to handle garbage for Bekaa and Hermel, to $189, charged by Batco and Lavajet in the North and Akkar, and prices higher still for likely noncompetitive bids. Practically every bid is accompanied by an international company.
previously awarded seven leases, two through noncompetitive bids, for projects in the Atlantic Ocean, including Cape Wind in Nantucket Sound.
The ratio of government securities offered for competitive and noncompetitive bids is 70 %:30%.
Hitachi-LG Data Storage and the co-conspirators also "submitted collusive and noncompetitive bids" for optical disc drive contracts at an HP procurement event, according to the DOJ.
The former Marsh managers are accused of colluding with insurance executives to arrange noncompetitive bids and then conveying these bids to clients under false pretenses.
Finally, any entity or individual may submit noncompetitive bids in an amount up to $1 million.