noncompetitive bid investment & finance definition
Treasury
auction bids that come from small investors over the Internet, from a Federal
Reserve Bank, or from some commercial banks. When entering their bids,
purchasers of noncompetitive bids agree to accept the interest rate offered,
which is determined through the bids of the competitive bidders. The
competitive bidders are large banks that buy millions of dollars of the
Treasury issues at a time.
See noncompetitive bid in Wall Street Words
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.
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