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Distinguish between competitive and non-competitive bids when purchasing Treasury bonds in the U.S.

Distinguish between competitive and non-competitive bids when purchasing Treasury bonds in the U.S.

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Non-competitive. bid auctions. allow. investors. to submit. a bid to. purchase a. set dollar. amount. of. the. Bills. at the. next. auction. The. yield. they. receive. is based. upon. the average. auction. price. from. all. bidders. This. is a good. method. for. individual. investors. and. can. be. done via the. TreasuryDirect site. The. maximum. amount. that can. be. purchased. through. a non-competitive. bid. is. $5 million.Competitive bidding. auctions. are. geared. for those. who. only. want to. buy the. bills at a. specific. or desired. yield. These. bids must. be made. via a. bank. or. a broker. A .buyer. can purchase. up. to 35% of the. amount. of the. initial. offering. for the. bill. being. auctioned.

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